10-K/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K/A

(Amendment No. 1)

(Mark One) 

☒ ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended June 30, 2018

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________

Commission File No: 000-20190

AEON GLOBAL HEALTH CORP.

(Exact Name of Registrant as Specified in its Charter)

Delaware	14-1673067
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
2225 Centennial Drive Gainesville, GA	30504
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: 1-888-661-0225

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
None

Securities registered pursuant to Section 12(g) of the Act:

          Common Stock, $0.001 par value per share          

(Title of Class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐  No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ☐   No ☒

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for past 90 days. Yes ☒   No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this Chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒   No ☐

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer    ☒	Smaller reporting company ☒
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐   No ☒

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter: (December 31, 2017) $3,117,229 for Aeon Global Health Corp.

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date: 7,383,706 as of September 19, 2018.

DOCUMENTS INCORPORATED BY REFERENCE

List hereunder the following documents if incorporated by reference and the Part of the Form 10-K (e.g., Part I, Part II, etc.) into which the document is incorporated:

Part III of this report incorporates information by reference from the Company’s definitive proxy statement, which proxy statement is due to be filed with the Securities and Exchange Commission no later than 120 days after June 30, 2018.

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EXPLANATORY NOTE

Aeon Global Health Corp. is filing this Amendment No. 1 to its Annual Report on Form 10-K for the fiscal year ended June 30, 2018 (the “Original Form 10-K”) to correct an inadvertent error that resulted in the Original Form 10-K being filed with an incorrect version of Exhibit 101.1, which provides items from our Original Form 10-K formatted in eXtensible Business Reporting Language.

This Amendment No. 1 on Form 10-K/A (the “Amendment”) to our Original Form 10-K is being filed in accordance with Rule 12b-15 under the Securities Exchange Act of 1934 for the sole purpose of including the correct version of Exhibit 101.1.

This Amendment does not amend or otherwise update any other information in the Original Form 10-K and does not reflect events occurring after the date of the Original Form 10-K. No other changes have been made to the Original Form 10-K.

TABLE OF CONTENTS

		Page
PART IV
Item 15.	Exhibits and Financial Statement Schedules	1

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PART IV

Item 15. Exhibits and Financial Statement Schedules.

The exhibits designated with an asterisk (*) are filed herewith. All other exhibits have been previously filed with the Commission and pursuant to 17 C.F.R. ss. 230.411, are incorporated by reference to the document referenced in brackets following the descriptions of such exhibits. A management contract or compensation plan or arrangement is indicated with (§§). Certain portions of exhibits marked with the symbol (++) have been granted confidential treatment by the Securities and Exchange Commission. Such portions were omitted and filed separately with the Securities and Exchange Commission.

Exhibit No.		Description
2.1	Amended and Restated Agreement and Plan of Merger dated as of January 26, 2016, by and among, Authentidate Holding Corp., RMS Merger Sub, LLC, and Peachstate Health Management LLC, d/b/a AEON Clinical Laboratories (filed as Exhibit 2.1 to Current Report on Form 8-K filed on February 1, 2016).
2.1.1	Amendment No. 1 dated as of May 31, 2016 to Amended and Restated Merger Agreement, dated as of January 26, 2016 (filed as Exhibit 2.1 to Current Report on Form 8-K filed on June 6, 2016).
2.1.2	Amendment No. 2 dated as of December 15, 2016 to Amended and Restated Merger Agreement (filed as Exhibit 2.1 to Current Report on Form 8-K filed on December 21, 2016).
3.1	Certificate of Incorporation (filed as Exhibit 3.3.1 to Registration Statement on Form S-18, File No. 33-46246-NY).
3.1.1	Certificate of Amendment to Certificate of Incorporation (filed as Exhibit 3 to Definitive Proxy Statement dated February 16, 2001 as filed with the Securities and Exchange Commission).
3.1.2	Certificate of Amendment to Certificate of Incorporation (filed as Exhibit C to Definitive Proxy Statement dated December 31, 2003 as filed with the Securities and Exchange Commission).
3.1.3	Certificate of Amendment to Certificate of Incorporation (filed as Exhibit 3.1 to Current Report on Form 8-K as filed with the Securities and Exchange Commission on December 23, 2011).
3.1.4	Certificate of Amendment to Certificate of Incorporation (filed as Exhibit 3.1 to Current Report on Form 8-K as filed with the Securities and Exchange Commission on August 30, 2012).
3.1.5	Certificate of Amendment to Certificate of Incorporation (filed as Exhibit 3.1 to Current Report on Form 8-K as filed with the Securities and Exchange Commission on July 7, 2015).

3.1.6	Certificate of Amendment to Certificate of Incorporation (filed as Exhibit 3.1 to Current Report on Form 8-K as filed with the Securities and Exchange Commission on January 22, 2016).
3.1.7	Certificate of Amendment to Certificate of Incorporation (filed as Exhibit 3.2 to Current Report on Form 8-K as filed with the Securities and Exchange Commission on January 22, 2016).
3.1.8	Certificate of Amendment to Certificate of Incorporation (filed as Exhibit 3.1 to Current Report on Form 8-K as filed with the Securities and Exchange Commission on February 1, 2018).
3.2	Certificate of Designations, Preferences and Rights and Number of Shares of Series D Convertible Preferred Stock (filed as Exhibit 3.1 to Current Report filed on June 12, 2013).
3.2.1	Certificate of Designations, Preferences and Rights and Number of Shares of Series E Convertible Preferred Stock (filed as Exhibit 3.1 to current report on Form 8-K filed on March 24, 2017).

1

3.3	Amended and Restated By-laws (filed as Exhibit 3.1 to Current Report on Form 8-K, dated December 13, 2016).
4.1	Form of Common Stock Certificate (filed as Exhibit 4.1 to Registration Statement on Form S-18, File No. 33-46246-NY).
4.2	Form of Warrants issued March 14, 2012 (filed as Exhibit 4.1 to Current Report on Form 8-K filed on March 14, 2012).
4.3	Form of Warrants issued September 28, 2012 (filed as Exhibit 4.2 to Current Report on Form 8-K filed on September 28, 2012).
4.4	Form of Extension Warrants issued September 28, 2012 (filed as Exhibit 4.3 to Current Report on Form 8-K filed on September 28, 2012).
4.4	Specimen of Series D Convertible Preferred Stock Certificate (filed as Exhibit 4.2 to Current Report on Form 8-K filed on June 12, 2013).
4.5	Form of Warrant issued to consultant dated as of September 19, 2013 (filed as Exhibit 4.2 to Quarterly Report on Form 10-Q filed on February 13, 2014).
4.6	Form of Warrant issued to consultant dated as of September 19, 2013 (filed as Exhibit 4.3 to Quarterly Report on Form 10-Q filed on February 13, 2014).
4.7	Form of Warrant issuable to Investors dated as of November 11, 2013 (filed as Exhibit 4.1 to Current Report on Form 8-K filed on November 13, 2013).
4.8	Form of Warrant issued to consultant dated as of December 5, 2013 (filed as Exhibit 4.3 to Quarterly Report on Form 10-Q filed on February 13, 2014).
4.9	Form of Warrant issued pursuant to Securities Purchase Agreement dated as of August 28, 2014 (filed as Exhibit 4.1 to Current Report on Form 8-K filed on September 2, 2014).
4.10	Warrant issued to VER 83, LLC dated February 17, 2015 (filed as Exhibit 4.4 to Current Report on Form 8-K filed on February 23, 2015).
4.11	Note Extension Agreement dated April 2, 2015 between Authentidate Holding Corp. and VER 83, LLC (filed as Exhibit 10.1 to Current Report on Form 8-K filed on April 9, 2015).
4.12	Form of Warrant Issued April 3, 2015 (filed as Exhibit 4.1 to Current Report on Form 8-K filed on April 9, 2015).

4.13	Warrant Amendment Agreement dated April 24, 2015 between Authentidate Holding Corp. and Lazarus Investment Partners, LLLP (filed as Exhibit 10.1 to Current Report on Form 8-K filed on April 28, 2015).
4.14	Form of Warrant issued June 8, 2015 (filed as Exhibit 4.28 to Annual Report on Form 10-K for the fiscal year ended June 30, 2015).

4.15 Warrant Amendment Agreement dated August 7, 2015 between Authentidate Holding Corp. and MKA 79, LLC (filed as Exhibit 10.2 to Current Report on Form 8-K filed on August 12, 2015).

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4.16	Form of Warrant issued to Consultant as of July 1, 2015 (filed as Exhibit 4.32 to Annual Report on Form 10-K for the fiscal year ended June 30, 2015).
4.17	Form of Warrant issued September 18, 2015 (filed as Exhibit 4.2 to Current Report on Form 8-K filed on September 24, 2015).
4.18	Form of Warrant issued October 28, 2015 (filed as Exhibit 4.7 to Quarterly Report on Form 10-Q filed on November 13, 2015).
4.19	Form of Warrant issuable to VER 83, LLC (filed as Exhibit 4.2 to Current Report on Form 8-K filed on December 17, 2015).
4.20	Form of Warrant issuable to Lazarus Investment Partners, LLLP (filed as Exhibit 4.4 to Current Report on Form 8-K filed on December 17, 2015).
4.21	Form of New Note Issued March 20, 2017 (filed as Exhibit 4.1 to Current Report on Form 8-K filed on March 24, 2017).
4.22	Specimen of Series E Convertible Preferred Stock Certificate (filed as Exhibit 4.37 to Annual Report on Form 10-K filed on April 5, 2017).
4.23	Form of New Senior Note Issued March 27, 2018 (filed as Exhibit 4.1 to Current Report on Form 8-K filed on March 28, 2018).
4.24	Form of Grid Note Issued July 19, 2018 (filed as Exhibit 4.1 to Current Report on Form 8-K filed on July 24, 2018).
10.1 §§	2000 Employee Stock Option Plan, as amended (filed as Exhibit B to Definitive Proxy Statement dated December 31, 2003 as filed with the Securities and Exchange Commission).
10.2 §§	Form of Stock Option Award Pursuant to 2000 Employee Stock Option Plan, as amended (filed as Exhibit 10.30.1 to Annual Report on Form 10-K for the fiscal year ended June 30, 2004).
10.3 §§	Form of Stock Option Award Pursuant to 2001 Non-Executive Director Stock Option Plan, as amended (filed as Exhibit 10.31.1 to Annual Report on Form 10-K for the fiscal year ended June 30, 2004).
10.4 §§	2010 Employee Stock Option Plan (filed as Exhibit A to definitive Proxy Statement dated April 14, 2010).
10.5 §§	Form of Stock Option Award Pursuant to 2010 Employee Stock Option Plan (filed as Exhibit 10.22 to Annual Report on Form 10-K for the fiscal year ended June 30, 2010).
10.6 §§	2001 Non-Executive Director Stock Option Plan, as amended (filed as Exhibit 10.2 to Current Report on Form 8-K dated May 25, 2010).
10.7 §§	Form of Incentive Stock Option Grant Agreement under the 2011 Omnibus Equity Incentive Plan (filed as Exhibit 10.32 to the Annual Report on Form 10-K for the year ended June 30, 2011).
10.8 §§	Form of Non-Statutory Stock Option Grant Agreement under the 2011 Omnibus Equity Incentive Plan (filed as Exhibit 10.33 to the Annual Report on Form 10-K for the year ended June 30, 2011).
10.9 ++	Intellectual Property License and Supply Agreement dated November 21, 2011 (filed as Exhibit 10.1 to Current Report on Form 8-K filed on November 28, 2011).

10.10	Form of Indemnification Agreement (filed as Exhibit 10.1 to Current Report on Form 8-K filed on September 12, 2012).
10.11 §§	Form of Restricted Stock Unit Agreement (filed as Exhibit 10.5 to Current Report on Form 8-K filed on January 17, 2013).

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10.12	Form of Registration Rights Agreement dated as of November 11, 2013 (filed as Exhibit 10.2 to Current Report on Form 8-K filed November 13, 2013).
10.13 §§	Form of Restricted Stock Unit Agreement granted January 28, 2014 (filed as Exhibit 10.3 to Current Report on Form 8-K filed January 30, 2014).
10.14	Registration Rights Agreement dated May 29, 2015 (filed as Exhibit 10.44 to Annual Report on Form 10-K for the fiscal year ended June 30, 2015).
10.15	Amendment Agreement dated January 15, 2016 (filed as Exhibit 10.1 to Current Report on Form 8-K filed January 21, 2016).
10.16	Form of Lockup Agreement (filed as Exhibit 10.2 to Current Report on Form 8-K filed January 21, 2016).
10.17	Lease Agreement dated as of March 1, 2014, as amended January 20, 2016, between Centennial Properties of Georgia, LLC and Peachstate Health Management, LLC d/b/a AEON Clinical Laboratories (filed as Exhibit 10.2 to Current Report on Form 8-K filed February 1, 2016).
10.18	2011 Omnibus Equity Incentive Plan amended July 11, 2016 (filed as Exhibit 10.1 to Current Report on Form 8-K filed July 13, 2016).
10.19	Form of Note Exchange Agreement dated March 20, 2017 (filed as Exhibit 10.1 to Current Report on form 8-K filed on March 24, 2017).
10.20	Form of Exchange Agreement for Series E Preferred Stock dated March 20, 2017 (filed as Exhibit 10.2 to Current Report on Form 8-K filed March 24, 2017).
10.21	Form of Security Agreement dated March 20, 2017 (filed as Exhibit 10.3 to Current Report on form 8-K filed March 24, 2017).
10.22 §§	Form of Restricted Stock Unit Agreement issued June 2, 2017 (filed as Exhibit 10.27 to the Annual Report on Form 10-K on October 13, 2017).
10.23 §§	Employment Letter entered into on September 8, 2017 with David C. Goldberg (filed as Exhibit 10.1 to Current Report on form 8-K filed September 14, 2017).
10.24 §§	Employment Letter entered into on September 8, 2017 with Michael J. Poelking (filed as Exhibit 10.2 to Current Report on form 8-K filed September 14, 2017).
10.25	Form of Note Exchange Agreement dated March 27, 2018 (filed as Exhibit 10.1 to Current Report on Form 8-K filed March 28, 2018).
10.26	Form of Settlement and Restructuring Agreement dated July 19, 2018 (filed as Exhibit 10.1 to Current Report on Form 8-K filed July 24, 2018).
10.27	Form of Note Exchange Agreement dated July 19, 2018 (filed as Exhibit 10.2 to Current Report on Form 8-K filed July 24, 2018).
10.28	Form of Restricted Stock Unit Agreement granted March 31, 2018 (filed as Exhibit 10.4 to Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2018).
10.29	Form of Restricted Stock Unit Agreement granted March 31, 2018 (filed as Exhibit 10.4 to Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2018).
10.30	Form of Note Exchange Agreement dated July 19, 2018 (filed as Exhibit 10.2 to Current Report on Form 8-K filed on July 24, 2018).

4

10.31  Consent and Amendment Agreement dated July 19, 2018 (filed as Exhibit 10.3 to Current Report on Form 8-K filed on July 24, 2018).

10.32	Amendment to Amended and Restated Security Agreement dated July 19, 2018 (filed as Exhibit 10.4 to Current Report on Form 8-K filed on July 24, 2018).
14	Code of Ethics (filed as Exhibit 14 to Annual Report on Form 10-K for the fiscal year ended June 30, 2003).

21.1	Subsidiaries of Registrant (incorporated by reference to the corresponding exhibit to the Original Form 10-K).
23.1	Consent of Rosenberg Rich Baker Berman P.A. (incorporated by reference to the corresponding exhibit to the Original Form 10-K).
31.1	Certification of Chief Executive Officer (incorporated by reference to the corresponding exhibit to the Original Form 10-K).
31.2	Certification of Chief Financial Officer (incorporated by reference to the corresponding exhibit to the Original Form 10-K).
32.1	Section 1350 Certification of Chief Executive Officer (incorporated by reference to the corresponding exhibit to the Original Form 10-K).
32.2	Section 1350 Certification of Chief Financial Officer (incorporated by reference to the corresponding exhibit to the Original Form 10-K).
101.1 *	The following financial information from Aeon Global Health Corp.’s Annual Report on Form 10-K for the fiscal year ended June 30, 2018, formatted in XBRL (eXtensible Business Reporting Language) and filed electronically herewith: (i) the Consolidated Balance Sheets; (ii) the Consolidated Statements of Operations; (iii) the Consolidated Statements of Shareholder’s Equity; (iv) the Consolidated Statement of Cash Flows, and (v) the Notes to Consolidated Financial Statements.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

		AEON GLOBAL HEALTH CORP.
	By:	/s/ Hanif Roshan
	Name:	Hanif Roshan
Dated: November 8, 2018	Title:	Chief Executive Officer and Chairman of the Board

	By:	/s/ Michael J. Poelking
	Name:	Michael J. Poelking
Dated: November 8, 2018	Title:	Chief Financial Officer and Treasurer

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Document And Entity Information - USD ($)	12 Months Ended
	Jun. 30, 2018	Sep. 19, 2018	Dec. 31, 2017
Document Information [Line Items]
Entity Registrant Name	Aeon Global Health Corp.
Entity Central Index Key	0000885074
Trading Symbol	aghc
Current Fiscal Year End Date	--06-30
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding (in shares)		7,383,706
Entity Public Float			$ 3,117,229
Document Type	10-K/A
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Amendment Flag	true
Amendment Description	Amendment 1
Entity Shell Company	false

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Consolidated Balance Sheets - USD ($)	Jun. 30, 2018	Jun. 30, 2017
Current assets
Cash and cash equivalents	$ 723,352	$ 1,121,763
Restricted cash		120,695
Accounts receivable, net	2,507,304	1,020,988
Inventory, net	453,129	347,750
Prepaid expenses and other current assets	54,058	58,711
Total current assets	3,737,843	2,669,907
Property and equipment, net	1,421,097	2,203,543
Other assets
Intangibles
Security deposits		10,211
Deferred tax asset	5,816,315	11,848,017
Total assets	10,975,255	16,731,678
Current liabilities
Accounts payable	1,436,897	2,177,722
Accrued expenses	2,237,848	2,168,090
Accrued commissions	608,405	427,627
Accrued dividends	984,979	644,979
Accrued income taxes payable	515,667
Deferred rent	194,628	141,833
Related party notes payable and related party accrued interest	3,049,651	2,545,199
Derivative liabilities	1,323,625	551,040
Total current liabilities	10,351,700	8,656,490
Deferred rent	135,001	45,000
Total liabilities	10,486,701	8,701,490
Commitments and contingencies
Shareholders’ equity
Preferred stock, $.10 par value; 5,000,000 shares authorized, Series D, 605,000 shares and Series E 25,000 shares issued and outstanding at June 30, 2018, and June 30, 2017, respectively	63,000	63,000
Common stock, $.001 par value; 190,000,000 shares authorized, 7,249,370 and 7,249,370 shares issued and outstanding on June 30, 2018, and June 30, 2017 , respectively	25,579	8,938
Additional paid-in capital	45,089,337	44,307,479
(Accumulated deficit) retained earnings	(44,689,362)	(36,349,229)
Total shareholders’ equity	488,554	8,030,188
Total liabilities and shareholders’ equity	$ 10,975,255	$ 16,731,678

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Consolidated Balance Sheets (Parentheticals) - $ / shares	Jun. 30, 2018	Jun. 30, 2017
Preferred stock, par value (in dollars per share)	$ 0.10	$ 0.10
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	190,000,000	190,000,000
Common stock, shares issued (in shares)	7,246,390	7,249,370
Common stock, shares outstanding (in shares)	7,246,390	7,249,370
Series D Convertible Preferred Stock [Member]
Preferred stock, shares issued (in shares)	605,000	605,000
Preferred stock, shares outstanding (in shares)	605,000	605,000
Series E Convertible Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 30	$ 30
Preferred stock, shares issued (in shares)	25,000	25,000
Preferred stock, shares outstanding (in shares)	25,000	25,000

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Consolidated Statements of Operations - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Net revenues
Net revenues	$ 16,301,144	$ 20,198,771
Operating expenses
Cost of revenues	3,802,174	4,200,445
Selling, general and administrative	11,695,164	14,288,727
Share based compensation	798,499	256,884
Depreciation and amortization	802,484	1,667,237
Impairment of goodwill		3,318,000
Impairment of intangibles		1,816,676
Total operating expenses	17,081,680	25,578,069
Operating loss	(780,536)	(5,379,298)
Other (expense) income
Interest	(140,499)	(456,646)
Change in fair value of derivative liabilities	(772,585)	828,382
Loss on extinguishment of debt		(258,037)
Other	(209,855)	(160,134)
Total other (expense) income	(1,122,939)	(46,435)
Loss before provision for income taxes	(1,903,475)	(5,425,733)
Provision for income taxes	(6,096,902)	(26,647,781)
Net loss	(8,000,377)	(32,073,514)
Less: preferred dividends	(339,756)	(358,832)
Net loss available to common shareholders	$ (8,340,133)	$ (32,432,346)
Loss per share
Basic earnings per common share (in dollars per share)	$ (1.15)	$ (4.51)
Diluted earnings per common share (in dollars per share)	$ (1.15)	$ (4.51)
Weighted average number of common shares outstanding
Basic (in shares)	7,249,370	7,188,900
Diluted (in shares)	7,249,370	7,188,900
Fees for Service [Member]
Net revenues
Net revenues	$ 15,309,281	$ 18,912,074
Hosted Software Service [Member]
Net revenues
Net revenues	973,362	1,259,951
Telehealth Product and Service [Member]
Net revenues
Net revenues	$ 18,501	$ 26,746

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Consolidated Statement of Shareholders' Equity - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Jun. 30, 2016	633,000	5,772,258
Balance at Jun. 30, 2016	$ 63,300	$ 5,772	$ 38,316,376	$ 1,555,715	$ 39,941,163
Share-based compensation expense			256,884		256,884
Stock dividend (in shares)		1,395,901
Stock dividend		$ 1,396	5,471,202	(5,472,598)
Preferred dividend accrual				(358,832)	(358,832)
Issuance of common stock per severance agreements (in shares)		81,211
Issuance of common stock per severance agreements		$ 56	184,331		184,387
Conversion of Preferred Series B to Series E (in shares)	(3,000)
Conversion of Preferred Series B to Series E	$ (300)		50,300		50,000
Issuance of Restricted Stock Units		1,714	28,386		30,100
Net loss				(32,073,514)	(32,073,514)
Balance (in shares) at Jun. 30, 2017	630,000	7,249,370
Balance at Jun. 30, 2017	$ 63,000	$ 8,938	44,307,479	(36,349,229)	8,030,188
Share-based compensation expense			781,858		781,858
Stock dividend (in shares)
Stock dividend
Preferred dividend accrual				(339,756)	(339,756)
Issuance of common stock per severance agreements
Conversion of Preferred Series B to Series E
Issuance of Restricted Stock Units		16,641			16,641
Net loss				(8,000,377)	(8,000,377)
Balance (in shares) at Jun. 30, 2018	630,000	7,249,370
Balance at Jun. 30, 2018	$ 63,000	$ 25,579	$ 45,089,337	$ (44,689,362)	$ 488,554

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Consolidated Statement of Cash Flows - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash Flow from operating activities
Net loss	$ (8,000,377)	$ (32,073,514)
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Deferred taxes	6,031,702	26,644,983
Change in fair value of derivative liabilities	772,585	(828,382)
Loss on debt extinguishment		258,037
Bad debt expense
Depreciation and amortization	802,484	1,667,237
Share based compensation	798,499	256,884
Impairment of goodwill		3,318,000
Impairment of intangibles		1,816,676
Changes in assets and liabilities
Restricted cash	120,695
Accounts receivable	(1,486,316)	1,121,526
Inventory	(105,379)	(9,843)
Prepaid expenses and other current assets	4,653	112,232
Deferred taxes
Accounts payable	(740,581)	(2,146,934)
Accrued expenses	74,209	1,006,543
Accrued commissions	180,778	(678,928)
Income taxes payable	515,667
Deferred rent	142,795	72,454
Security deposit
Net cash (used in) provided by operating activities	(888,585)	536,971
Cash flows from investing activities
Proceeds from deposits	10,211
Purchases of property and equipment	(20,037)	(22,103)
Net cash used in investing activities	(9,826)	(22,103)
Cash flows from financing activities
Proceeds from note payable - related party	500,000	250,000
Repayments of notes payable		(1,057,811)
Net cash provided by (used in) financing activities	500,000	(807,811)
Net decrease in cash	(398,411)	(292,943)
Cash beginning of period	1,121,763	1,414,706
Cash end of period	723,352	1,121,763
Supplemental disclosure of cash paid for:
Interest paid		742
Income taxes paid	111,550	223,358
Non-cash investing and financing activities
Non-cash preferred dividends	(339,756)	(358,832)
Earn-out common dividends paid in stock		5,472,598
Conversion of accrued interest to notes payable	4,452	375,199
Derivative liability resulting from issuance of convertible notes		328,422
Other non-cash financing activities		$ 65,853

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Note 1 - Description of Business, Reverse Merger and Liquidity

12 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Business Description and Basis of Presentation [Text Block]

1. Description of Business, Reverse Merger and Liquidity

Business

AEON Global Health Corp. (“AGHC”, the “Company”) and its subsidiaries primarily provide an array of clinical testing services to health care professionals through its wholly-owned subsidiary, Peachstate Health Management, LLC d/b/a AEON Clinical Laboratories (“AEON”). AGHC also continues to provide its legacy secure web-based revenue cycle management applications and telehealth products and services that enable health care organizations to increase revenues, improve productivity, reduce costs, coordinate care for patients, enhance related administrative and clinical workflows and compliance with regulatory requirements. Web-based services are delivered as Software as a Service (SaaS) to customers interfacing seamlessly with billing, information and records management systems.

Reverse Merger

On

January 27, 2016

AEON merged into a newly formed acquisition subsidiary of AHC pursuant to a definitive Amended and Restated Agreement and Plan of Merger dated

January 26, 2016,

as amended on

May 31, 2016 (

collectively the “Merger Agreement”) and

December 15, 2016 (

the “AEON Acquisition”). The merger certificate was filed with the Secretary of State of Georgia on

January 27, 2016.

AEON survived the merger as a wholly-owned subsidiary of AGHC (collectively the “Company”). AEON contracts with health care professionals to provide urine and oral fluid testing to patients. The

four

primary tests provided by AEON are Medical Toxicology, Pharmacogenomics, Cancer Genetic Testing and Molecular Biology. Following the completion of the reverse merger, the business conducted by AEON became primarily the business conducted by the Company.

Under accounting principles generally accepted in the United States of America (“U.S. GAAP”), the merger is treated as a “reverse merger” under the purchase method of accounting.  The consolidated financial statements reflect the historical results of AEON prior to the completion of the reverse merger since it was determined to be the accounting acquirer, and do

not

include historical results of AGHC prior to the completion of the merger.

Going Concern

As of the filing date of this Annual Report on Form

10

-K, and after giving effect to the recent note exchange transaction described in greater detail in Note 

7

of the Notes to Consolidated Financial Statements, there is outstanding an aggregate principal amount of

$3,209,651

of notes, consisting of (i) an aggregate principal amount of

$1,698,169

of senior secured convertible notes with a maturity date of

March 20, 2020, (

ii) a maximum aggregate principal amount of

$2.0

million of senior secured grid notes with an aggregate outstanding principal amount of

$1,351,482

with a maturity date of

June 30, 2020,

and (iii) a secured note subordinated to the interests of the existing senior lenders in the principal amount of

$160,000

with a maturity date of

June 15, 2018.

We expect existing resources, revenues generated from operations, and proceeds received from other transactions we are considering which would satisfy working capital requirements for at least the next

twelve

months; however,

no

assurances can be given that we will be able to generate sufficient cash flow from operations or complete other transactions to satisfy our other obligations. The accompanying consolidated financial statements do

not

include any adjustments to the recoverability and classification of assets carrying amounts or the amounts and classifications of liabilities that might result from the outcome of these uncertainties. Accordingly, the Company needs to raise additional capital and is exploring potential transactions to improve our capital position. Unless we can increase revenues substantially or generate additional capital from other transactions, our current cash resources will only satisfy our working capital needs for a limited period of time.

The Company’s capital requirements have been and will continue to be significant and it is expecting significant amounts of capital to develop, promote and market its services. At

June 30, 2018,

cash and cash equivalents amounted to

$723,352

and the Company’s working capital deficit was

$6,613,857.

Since

June 30, 2017

cash and cash equivalents decreased by

$398,411.

Currently, available cash and cash equivalents as of the filing date of this Annual Report on Form

10

-K is

$855,000

and current estimated monthly operational requirements are approximately

$1,200,000.

The Company does

not

have a bank line of credit or other fixed source of capital reserves. We are exploring potential transactions to improve our capital position to ensure we can meet our financing and working capital requirements. We would expect to raise additional funds through obtaining a credit facility from an institutional lender or undertaking private debt financings. Raising additional funds by issuing equity or convertible debt securities

may

cause our stockholders to experience substantial dilution in their ownership interests and new investors

may

have rights superior to the rights of our other stockholders. Raising additional funds through debt financing or preferred stock, if available,

may

involve covenants that restrict our business activities and options and such additional securities

may

have powers, designations, preferences or rights senior to our currently outstanding securities. We

may

also enter into financing transactions which involve the granting of liens on our assets or which grant preferences of payment from our revenue streams, all of which could adversely impact our ability to rely on our revenue from operations to support our ongoing operating costs.

Alternatively, we

may

seek to obtain new financing from existing security holders, which

may

include reducing the exercise or conversion prices of outstanding securities, or the issuance of additional equity securities. Currently, we do

not

have any definitive agreements with any

third

-parties for such transactions and there can be

no

assurance that we will be successful in raising additional capital or securing financing when needed or on terms satisfactory to the company. If we are unable to raise additional capital when required, or on acceptable terms, we will need to reduce costs and operations substantially or potentially suspend operations, any of which would have a material adverse effect on our business, financial condition and results of operations.

Management has concluded that due to the conditions described above, there is substantial doubt about the entity’s ability to continue as a going concern. We have evaluated the significance of the conditions in relation to our ability to meet our obligations and believe that our current cash balance and future cash receipts from revenue will provide sufficient capital to continue operations through fiscal

2019.

In addition to our efforts to improve our capital position through commercial operations and/or product partnering opportunities, we are considering capital raising alternatives, including credit lines from external financial sources. We cannot assure you that financing will be available on acceptable terms. If we are

not

successful in generating or raising additional capital, we will risk defaulting under the terms of our existing loans. Additionally, if additional capital is raised through the sale of equity, or convertible debt securities, the issuance of such securities would result in dilution to our existing stockholders. Furthermore, despite our optimism regarding the future of the Company, even if the Company is adequately funded, there is

no

guarantee that any of our services will perform as hoped or that such services can be successfully commercialized.

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Note 2 - Summary of Significant Accounting Policies and Recently Issued Accounting Standards

12 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Significant Accounting Policies [Text Block]

2. Summary of Significant Accounting Policies and Recently Issued Accounting Standards

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The most sensitive accounting estimates affecting the financial statements are revenue recognition, the allowance for doubtful accounts, depreciation of long lived assets, income taxes and associated deferrals and valuation allowances, commitments and contingencies and measurement of derivative liabilities.

Accounts Receivable, Net

Accounts receivable represent customer obligations due under normal trade terms, net of allowance for doubtful accounts. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience and other currently available evidence. The allowance for doubtful accounts was approximately

$942,000

and

$984,000

as of

June 30, 2018

and

2017,

respectively.

Fair Value Measurements

The Company follows Accounting Standards Codification (“ASC)

820

-

10

“

Fair Value Measurements and Disclosures

”, of the FASB to measure the fair value of its financial statements and disclosures about fair value of its financial instruments. ASU

820

-

10

establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, ASC

820

-

10

establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into

three

broad levels. The

three

levels of fair value hierarchy defined by ASC

820

-

10

are described below:

Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date.

Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.

Level 3 Pricing inputs that are generally unobservable input and not corroborated by market data.

The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lower priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than

one

level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The Company’s warrant liabilities and certain conversion features underlying the convertible debt are categorized as Level

3.

Revenue Recognition

The Company provides laboratory testing services, web-based hosted software services, telehealth products and post contract customer support services.

In accordance with Financial Accounting Standards Board (“FASB”) ASC-

605

“Revenue Recognition”,

the Company recognizes revenues when there is a persuasive evidence of an arrangement, title and risk of loss have passed, the product was shipped or services have been rendered, sales price is fixed or determinable and collection of the related receivable is reasonably assured. Billings for laboratory testing services are reimbursed by

third

-party payors net of allowance for differences between amounts billed and the cash receipts.

Revenue from laboratory testing services are recognized at the time test results are delivered, net of estimated contractual allowances. Revenues for services paid by

third

-party payers, including Medicare and Medicaid, are recorded as revenues net of allowances for differences between amounts bill and the estimated receipts from such payers.  Adjustments to the allowances, based on actual receipts from the

third

-party payers, are recorded upon settlement.

Revenue for hosted software services, telehealth products, and customer support services are recognized when persuasive evidence of an arrangement exists, delivery has occurred, the selling price is fixed, and collectability is reasonably assured.

Concentration and Credit Risk

The Company maintains its cash in bank deposit accounts which, at times,

may

exceed federally insured limits. Accounts are guaranteed by the Federal Deposit Insurance Corporation (FDIC) up to certain limits. The Company had approximately

$473,000

and

$871,000

over FDIC-insured limits as of

June 30, 2018

and

2017,

respectively. The Company has

not

experienced any losses in such accounts.

At

June 30, 2018,

one

customer had an accounts receivable balance of approximately

$1,270,000.

This customer had a minimal balance at

June 30, 2017.

This customer’s accounts receivable balance comprises

37%

of gross accounts receivable at

June 30, 2018.

Income Taxes

The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. In estimating future tax consequences, the Company generally considers all expected future events other than enactments of changes in tax laws or rates. The effect on deferred tax assets and liabilities of a change in tax rates will be recognized as income or expense in the period that includes the enactment date. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized.

Prior to the reverse merger, AEON elected to be taxed as an S Corporation for federal and certain state income tax purposes. Under this election substantially all the profits, losses, credits and deductions of the Company are passed through to the individual shareholders. Therefore prior to the reverse merger

no

provision or liability for income taxes has been included in these consolidated financial statements except for state and localities where the S Corporation status has

not

been recognized.

Prior to the reverse merger, AGHC tax benefits were fully offset by a valuation allowance due to the uncertainty that the deferred tax assets would be realized. Due to the reverse merger a deferred tax asset was recorded since it was determined the realization of some of these assets is more likely than

not,

due to consolidated earnings resulting in the expected usage of net operating loss carryforwards.

At

June 30, 2018,

the Company concluded that a significant portion of the deferred tax assets would

not

be realized. An increase to the valuation allowance was added in fiscal year

2018

of

$6,031,702

resulting in a deferred tax asset of

$5,816,315

at

June 30, 2018

versus

$11,848,017

at

June 30, 2017.

The valuation allowance was increased in

December 2017

due to the change in the Tax Cuts and Jobs Act. The remaining increase was the result of the Company’s expiration of net operating losses, which caused a portion of the DTA to be unusable.

Under income tax regulations in the United States AGHC is the acquirer of AEON. As such the Company must file a consolidated return for both AGHC and AEON for the year ending

June 30, 2016.

The return will include the operating results of AGHC from

July 1, 2015

through

June 30, 2016,

and AEON’s results from

January 27, 2016

through

June 30, 2016.

The Company is in the process of finalizing its

2016

and

2017

tax returns. When filed, both returns will be subject to audit by the Internal Revenue Service.

Management considers the likelihood of changes by taxing authorities in its filed income tax returns and recognizes a liability for or discloses potential changes that management believes are more likely than

not

to occur upon examination by tax authorities. Management has

not

identified any uncertain tax positions in previously filed

2015

income tax returns that require recognition or disclosure in the accompanying consolidated financial statements.

The Company’s policy is to include penalties and interest expense related to income taxes as a component of other expense and interest expense, respectively, as necessary.

Reclassification

Certain prior year amounts have been reclassified to conform to the current year presentation.

Recent Accounting Pronouncements

In

May 2014,

the FASB issued ASU

2014

-

09,

“Revenue from Contracts with Customers

”

(Topic

606

). This accounting standard outlines a single comprehensive model to use in accounting for revenue arising from contracts with customers. This standard supersedes existing revenue recognition requirements and eliminates most industry specific guidance from GAAP. The core principle of the revenue recognition standard is to require an entity to recognize as revenue the amount that reflects the consideration to which it expects to be entitled in exchange for goods or services as it transfers control to its customers. As of the date of this report, management has substantially completed the analysis related to the impact of adopting this standard. Accordingly, the Company will report uncollectible balances associated with customer responsibility as a reduction of the transaction price and a reduction in net revenues. In addition, the adoption of this new accounting standard will likely result in increased disclosure, including qualitative and quantitative disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company has adopted this ASU effective

July 1, 2018,

and this adoption will have an immaterial impact on the financial statements; however, adoption of this new ASU will require significantly enhanced disclosures for the Company. The Company plans to use the modified retrospective method for implementation.

               In

February 2016,

FASB issued ASU

2016

-

02,

Leases, which introduces the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. The guidance will be effective for annual reporting periods beginning after

December 15, 2018

and interim periods within those fiscal years with early adoption permitted. The guidance will be applied on a modified retrospective basis with the earliest period presented. Based on the effective date, this guidance would apply beginning

July 2019

which is when we plan to adopt this ASU. While we are still in the process of evaluating the effect of adoption on our consolidated financial statements and are currently assessing our leases, we do

not

expect the adoption will lead to a material increase in the assets and liabilities recorded on our consolidated balance sheet.

In

August 2016,

the FASB issued ASU

2016

-

15,

“Statement of Cash Flows (Topic

230

): Classification of Certain Cash Receipts and Cash Payments,”

which clarifies how certain cash receipts and payments are to be presented in the statement of cash flows. The guidance is effective for the Company on

July 1, 2018

and early adoption is permitted.

In

May 2017,

the FASB issued ASU

2017

-

09,

“Compensation-Stock Compensation (Topic

718

): Scope of Modification Accounting”

, which amends the scope of modification accounting for share-based payment arrangements, provides guidance on the types of changes to the terms or conditions or share-based payment awards to which an entity would be required to apply modification accounting. The ASU is effective for annual reporting periods, including interim periods within those annual reporting periods, beginning after

December 15, 2017.

The Company has adopted this ASU, and it does

not

expect it to have a material impact on the fiscal year

2019

financial statements.

In

July 2017,

the FASB issued ASU

2017

-

11,

“Earnings Per Share (Topic

260

), Distinguishing Liabilities from Equity (Topic

480

) and Derivatives and Hedging (Topic

815

); Part I. Accounting for Certain Financial Instruments with Down Round Features and Part II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception”,

which states that when determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature

no

longer precludes equity classification when assessing whether the instrument is indexed to the Company’s own stock. As a result, a freestanding equity-linked financial instrument (or embedded conversion option)

no

longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic

260

to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. The Company is evaluating the provisions of this ASU and plans to adopt this ASU effective

July

1,2019.

In

December 2017,

the Securities and Exchange Commission issued Staff Accounting Bulletin

No.

118,

which is an application of ASC Topic

740,

Income Taxes

, in the reporting period that includes

December 22, 2017,

the date on which the Tax Cuts and Jobs Act (the “Act”) was signed into law. The Act changes existing United States tax law and includes numerous provisions that will affect business. Staff Accounting Bulletin

No.

118

implies that if a reasonable estimate can be made of the Act’s effects on the Company’s financial statements, the reasonable estimate should be reported in the period ending after

December 22, 2017.

The Company has implemented Staff Accounting Bulletin

No.

118

during fiscal year

2018

by revaluing its deferred tax asset for the lower tax rates.

In

August 2018,

the FASB issued ASU

2018

-

13,

“

Fair Value Measurement (Topic

820

): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement

”, which adds disclosure requirements to Topic

820

for the range and weighted average of significant unobservable inputs used to develop Level

3

fair value measurements.  The Company is evaluating the provisions of this ASU and plans to adopt this ASU effective

July 1, 2020.

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Note 3 - Inventory

12 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Inventory Disclosure [Text Block]

3. Inventory

Inventory consists of the following:

	June 30,
	2018		2017
Laboratory testing supplies	$	453,129	$	347,750
Total inventory	$	453,129	$	347,750

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Note 4 - Property, Plant and Equipment

12 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

4. Property and Equipment

							Estimated
	June 30,						Useful Life
	2018			2017			In Years
Machinery and equipment	$	5,416,686		$	5,397,737		3	-	6
Software		393,383			392,913		5	-	7
Furniture and fixtures		105,662			105,043		5	-	7
Leasehold improvements		69,268			69,268			(1)
		5,984,999			5,964,961
Less: Accumulated depreciation and amortization		(4,563,902	)		(3,761,418	)
Property and equipment, net	$	1,421,097		$	2,203,543

(

1

) Lesser of lease terms or estimated useful life

Depreciation on property and equipment was approximately

$802,000

and

$1,295,000

for the years ended

June 30, 2018

and

2017,

respectively.

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Note 5 - Intangible Assets

12 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

5. Intangible Assets

The following table sets forth intangible assets as follows:

	June 30, 2018								June 30, 2017
	Gross Carrying Amount		Accumulated Amortization		Impairment		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Impairment		Net Book Value		Useful Life In Years
Trademarks	$	550,000	$	111,310	$	438,690	$	-	$	550,000	$	111,310	$	438,690	$	-	7
Acquired tech		1,794,000		416,014		1,377,986		-		1,794,000		416,014		1,377,986		-	7
Total	$	2,344,000	$	527,324	$	1,816,676	$	-	$	2,344,000	$	527,324	$	1,816,676	$	-
Goodwill	$	3,318,000			$	3,318,000			$	3,318,000			$	3,318,000

In the year ending

June 30, 2017,

the Company concluded these Authentidate intangible assets and goodwill were impaired. The Company recorded

$5,134,676

in impairment charges to eliminate the carrying value of goodwill, trademarks and acquired goodwill impairment charges are included in “Goodwill impairment” and trademarks and acquired technologies impairment is included in “Other intangible asset impairment” on the Consolidated Statement of Income for the year ending

June 30, 2017.

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Note 6 - Income Taxes

12 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Income Tax Disclosure [Text Block]

6. Income Taxes

The Company’s provision for income taxes consists of the following:

	Year Ended June 30,
	2018			2017
Current:
Federal	$	-		$	-
State		65,203			4,000
Total current		65,203			4,000
Deferred:
Federal		6,073,218			26,613,369
State		(41,519	)		30,412
Total deferred		6,031,699			26,643,781
Income tax provision	$	6,096,902		$	26,647,781

The reconciliation of the federal statutory income tax rate to the Company’s effective tax rate for the years ended

June 30, 2018

and

2017

are as follows:

	Year Ended June 30,
	2018					2017
Income taxes at the federal statutory rate	$	(524,386	)	27.55	%	$	(1,844,749	)	34.00	%
State income taxes, net of federal income tax effect		(179,145	)	9.41	%		(143,944	)	2.65	%
Permanent tax differences		(176,818	)	9.29	%		1,135,075		-20.92	%
Impact of rate change of tax cuts and jobs act		3,831,100		-201.27	%		-		0.00	%
Allowance		2,754,909		-144.73	%		27,500,720		-506.86	%
NOL expiration		388,978		-20.44	%		-		0.00	%
Other		2,264		-0.12	%		679		0.01	%
	$	6,096,902		-320.31	%	$	26,647,781		-491.14	%

              The Company's deferred tax assets and liabilities as of

June 30, 2018

and

2017

are as follows:

	Year Ended June 30,
	2018			2017
Deferred tax assets:
Accrued compensation	$	424,643		$	615,000
Accounts receivable allowance		238,629			367,000
Intangible assets		148,884			287,000
Other		178,453			237,000
Net operating loss and other carryforwards		40,149,607			60,996,017
Total gross deferred assets		41,140,216			62,502,000
Less: Valuation Allowance		(34,916,654	)		(49,247,000	)
Deferred tax asset after valuation allowance		6,223,562			13,255,017
Deferred tax liabilities:
Depreciation		(197,084	)		(705,000	)
Warrant derivative		(85,268	)		(331,000	)
Change in accounting method		(124,895	)		(371,000	)
Total deferred tax liability		(407,247	)		(1,407,000	)
Net Deferred Tax Asset	$	5,816,315		$	11,848,017

The Company’s deferred tax assets and liabilities as of

June 30, 2018

and

2017

are as follows:

Permanent tax differences for the year ended

June 30, 2018

in the above reconciliation table primarily consist of prior year return true-ups and the expiration of net operating loss carryforwards. Permanent tax differences for the year ended

June 30, 2017

primarily consist of goodwill impairment charges.

 As of

June 30, 2018,

the Company has net operating loss carryforwards of approximately

$244,194,000.

As of

June 30, 2018,

Federal net operating loss carryforwards are approximately

$164,160,000

(Federal

$164,160,000

and State

$80,034,000

), which expire between

2019

and

2037.

Approximately

$5,300,000

of the federal net operating loss carryforwards are Separate Return Limitation Year (SRLY) and can only be used by the entity that generated these losses in separate return years. State net operating loss carryforwards are approximately

$80,034,000,

which expire between

2027

and

2047.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.  Based on the result of current year operations, future income statement projections and the timing of NOL expirations, Company's valuation allowance increased during the year ended

July 30, 2018

by approximately

$6,032,000

to properly reflect the deferred tax asset.

The Tax Act was signed into law by the President of the United States on

December 22, 2017.

The Tax Act makes significant changes to U.S. tax laws and includes a reduction of U.S. corporation statutory income tax rates from

34%

to

21%

effective

January 1, 2018.

Under the Tax Act, the Company is subject to an average federal statutory tax rate of

27.55%

for its fiscal year ended

June 30, 2018.

The Company’s federal statutory tax rate will be

21.0%

beginning in

July 2018

for the fiscal year ending

June 30, 2019.

Under U.S. GAAP, deferred taxes must be adjusted for enacted changes in tax laws or rates during the period in which new tax legislation is enacted. Based on the provisions of the Tax Act, the Company provisionally remeasured its net deferred tax liabilities to incorporate the future lower corporate tax rate, resulting in an approximate

$21,000,000

reduction to net deferred tax assets in the

second

quarter of fiscal year

2018

(period of the Tax Act's enactment). In addition, remeasurements specifically related to the valuation allowance were necessary after the deferred tax assets were remeasured resulting in a

$17,000,000

decrease to the valuation allowance. The total provisional amounts related to the remeasurement of the Company’s deferred tax balances resulted in a

$4,000,000

unfavorable impact in the period of the Tax Act's enactment.

The Company adopted the guidance in ASU

2015

-

17,

Income Taxes

(Topic

740

): Balance Sheet Classification of Deferred Taxes, during the

fourth

quarter of fiscal year

June 30, 2016,

and all deferred tax assets and liabilities are classified as long-term.

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Note 7 - Related Party Notes Payable

12 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Short-term Debt [Text Block]

7. Related Party Notes Payable

	June 30, 2018				June 30, 2017
			Interest rate		Note		Interest rate
	Principal		per annum		Payable		per annum
Secured
	$	1,056,875	5% interest paid annually		$	1,056,875	5% interest paid annually
		641,294	5% interest paid annually			641,294	5% interest paid annually
		255,417	5% interest paid annually			255,417	5% interest paid annually
		591,613	5% interest paid annually			591,613	5% interest paid annually
		504,452	5% interest paid annually
Total	$	3,049,651		Total	$	2,545,199

The principal amount listed above is principal only and does

not

include accrued interest of approximately

$155,000

from

March 20, 2017

to

June 30, 2018.

Prior Year

Exchange Transaction

On

March 20, 2017,

the Company entered into a note exchange agreement with the holders of an aggregate principal amount of

$2,170,000

of outstanding promissory notes (the “Original Notes”), which were due and payable, pursuant to which the Company agreed to issue the holders of such notes, in consideration of the cancellation of the Original Notes, new promissory notes in the aggregate principal amount of

$2,545,199,

which is equal to the sum of the aggregate principal amount of the Original Notes plus the accrued but unpaid interest on the Original Notes (the “Senior Notes”). The Senior Notes are convertible into shares of the Company’s common stock at an initial conversion price of

$2.03

per share. Based on the initial conversion prices, the Senior Notes were convertible into up to

1,253,792

shares of common stock. If the Company issues or sells shares of its common stock, rights to purchase shares of its common stock, or securities convertible into shares of its common stock for a price per share that is less than the conversion price then in effect, such conversion price will be decreased to equal

85%

of such lower price. The foregoing adjustments to the conversion price will

not

apply to certain exempt issuances, including issuances pursuant to certain employee benefit plans. The conversion price is also subject to adjustment upon stock splits, reverse stock splits, and similar capital changes. These conversion options resulted in a derivative liability valued at

$328,422.

All of the Senior Notes had a maturity date of

one

year from the closing date. The Senior Notes were issued in consideration of the exchange of (i) an aggregate principal amount of

$950,000

of Original Notes currently convertible at a price of

$2.25

per share, (ii) an aggregate principal amount of

$520,000

of Original Notes which are currently convertible at a price of

$3.00

per share, and (iii) an aggregate principal amount of

$700,000

of unconvertible Original Notes.

The Senior Notes bear interest at the rate of

5%

per annum with interest payable upon maturity, the conversion of the Senior Notes or on any earlier redemption date. Beginning

one

month after the Company’s common stock is listed for trading on a national securities exchange, and the Company will have the right to redeem all or any portion of the outstanding principal balance of the Senior Notes, plus all accrued but unpaid interest at a price equal to

110%

of such amount. The holders of the Senior Notes shall have the right to convert any or the entire amount to be redeemed into common stock prior to redemption. Subject to certain exceptions, the Senior Notes are senior to existing and future indebtedness of the Company and are secured by a

first

priority lien on all the Company’s assets to the extent and as provided in a Security Agreement entered into between the Company and the holders. The Senior Notes contain customary covenants against incurring additional indebtedness and granting additional liens and contain customary event default. Upon the occurrence of an event of default under the Senior Notes, the holders

may

require the Company to repay all or a portion of the note in cash, at a price equal to

110%

of the principal, plus accrued and unpaid interest.

During the year ended

June 30, 2017,

in connection with the exchange of the Original Notes for the New Senior Notes, the Company also agreed with the holder of all outstanding shares of Series B Convertible Preferred Stock (the “Series B Preferred Stock”) to exchange all of its outstanding shares of Series B Preferred Stock for shares of a new series of convertible preferred stock designated as Series E Convertible Preferred Stock (the “Series E Preferred Stock”). Accordingly, on

March 20, 2017,

the Company also entered into a separate exchange agreement with the holder of the shares of Series B Preferred Stock, to exchange such shares for a total of

25,000

shares of Series E Preferred Stock. Each share of Series E Preferred Stock will have a stated value of

$30.00

per share. Pursuant to this exchange agreement, the holder of the shares of Series B Preferred Stock agreed to waive all unpaid dividends that had accrued on the shares of Series B Preferred Stock. The shares of Series E Preferred Stock are initially convertible by the holder into an aggregate of

187,500

shares of common stock at the initial conversion rate of

$4.00

per share. The conversion price of the new preferred stock is subject to adjustment solely in the event of stock dividends, combinations, splits, recapitalizations, and similar corporate events. The right of holders of Series E Preferred Stock to convert these securities into common stock is subject to a

4.99%

beneficial ownership limitation, which beneficial ownership limitation

may

be increased by a holder to a greater percentage

not

more than

9.99%

after providing notice to the Company.

Prior Year

Loss on Extinguishment of Debt

In accordance with ASC

470

-

50,

“

Debt – Modifications and Extinguishments

”, the Company’s note exchange agreement was tested to determine whether a debt modification or debt extinguishment had occurred. Based on management’s review, debt extinguishment accounting applied. A loss on extinguishment of

$258,037

resulted from the exchange. The loss consists of the resulting derivative liability of

$328,422

from embedded conversion options in the Senior Notes and the additional value of

$50,000

of the Series E Preferred Stock compared to the Series B Preferred Stock, offset by the waiving of the unpaid Preferred Series B dividends of

$120,385.

Current Year Exchange Transaction

On

March 27, 2018,

the Company entered into an agreement with the holders of outstanding Senior Notes to amend certain terms of such notes as described below (“Note Amendment Transaction”). Contemporaneously with the Note Amendment Transaction, the Company entered into an agreement with its Chief Executive Officer, who held a separate promissory note in the aggregate principle amount of

$500,000,

to exchange such note for an additional new senior note (the “Additional Senior Note”) on terms substantially the same as the Senior Notes in the Notes Amendment Transaction.

Note Amendment Transaction

In the Note Amendment Transaction, the holders (the “Senior Holders”) of the outstanding principal amount of

$2,545,199

of Senior Notes entered into a consent and amendment agreement with the Company (the “Consent Agreement”), pursuant to which the Senior Notes were amended to extend the maturity date for a period of

twelve

months, to

March 20, 2019

and in consideration thereof, the Senior Notes are convertible into up to

2,120,999

shares of common stock. The other material terms and conditions of the Senior Notes were

not

amended. Certain holders of the Senior Notes are affiliated with the Company as follows: (i) an aggregate principal amount of

$255,417

of Senior Notes are held by Hanif A. Roshan, the Chairman and Chief Executive Officer of the Company and (ii) an aggregate principal amount of

$591,613

of Senior Notes are held by Optimum Ventures, LLC, a part affiliated by ownership with the former owners of Peachstate Health Management, LLC, or subsidiary. Due to the adjustment of the conversion price of the Senior Notes, the exercise price of outstanding warrants to purchase an aggregate of

825,144

shares of common stock has been adjusted from

$2.07

to

$1.22

per share. Unpaid interest on the Senior Notes of

June 30, 2018

was approximately

$155,000,

which is

not

incorporated into the principal balance. Accrued interest on the Senior Note is due on

March 20, 2019

or any earlier payment of the Senior Notes.

Note Exchange Transaction

In connection with the Note Amendment Transaction, on

March 27, 2018,

the Company entered into a note exchange agreement (the “Note Exchange Agreement”) with its Chief Executive Officer, who also held a promissory note in the aggregate principal amount of

$500,000,

pursuant to which the Company agreed to issue to him, in consideration of the cancellation of such note,, the Additional Senior Note in the aggregate principal amount of

$504,452,

which is equal to the sum of the aggregate principal amount of the original note plus the accrued but unpaid interest thereon. The closing of the note Exchange Transaction occurred on

March 27, 2018.

The Additional Senior Note is the same, in all material respects, as the Senior Notes described above in the Note Amendment Transaction and is convertible into shares of the Company’s common stock at an initial conversion price of

$1.20.

Based on the initial conversion price, the Additional Senior Note is convertible into up to

420,376

shares of common stock. As the Additional Senior Note is the same in all material respects as the Senior Notes, the conversion price of the Additional Senior Note

may

be adjusted upon the occurrence of the same events which would result in an adjustment to the conversion price of the Senior Notes, as described above, including the issuance of securities at a price per share less than the current conversion price. Similarly, the maturity date, interest rate, events of default, redemption and other terms of the Additional Senior Note are the same as for the New Senior Notes. The Additional Senior Note is on parity with the Senior Notes and, subject to certain exceptions, is senior to other existing and future indebtedness of the Company and, together with the Senior Notes, is secured by a

first

priority lien on all of the Company’s assets to the extent and as provided in the Security Agreement as amended.

In accordance with ASC

470

-

50,

“Debt – Modifications and Extinguishments”,

the Company’s note exchange agreement was tested to determine whether a debt modification or debt extinguishment had occurred. Based on management’s review, modification accounting applied. Due to the debt exchange on

March 27, 2018,

the Company recorded

$242,846

 of non-cash expense resulting from the conversion feature of the convertible debt and

$904,035

 of non-cash expense to value the conversion feature as of

March 31, 2018. 

See Note

14,

Subsequent Events, in the notes to these financial statements for a settlement and restructuring agreement and note restructuring transaction entered into subsequent to

June 30, 2018.

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Note 8 - Equity

12 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

8. Equity

Preferred Stock

As of

June 30, 2018,

there were

25,000

shares of Series E Convertible Preferred Stock outstanding. The shares of Series E Preferred Stock are initially convertible into an aggregate of

187,500

shares of common stock at the initial conversion rate of

$4.00

per share. The conversion price of the Series E Preferred Stock will be subject to adjustment solely in the event of stock dividends, combinations, splits, recapitalizations, and similar corporate events and does

not

provide for general price-based anti-dilution adjustments. Each share of Series E Preferred Stock has a stated value of

$30.00

per share and has the following rights and preferences: (i) each holder of the Series E Preferred Stock has the right, at any time, to convert the shares of Series E Preferred Stock into shares of common stock, (ii) the Series E Preferred Stock is redeemable at the Company’s option commencing

one

year after the original issuance date, provided that the Company’s common stock is listed on a national securities exchange at such time, and (iii) the Series E Preferred Stock will pay dividends at the rate of

5%

 per annum in cash. The shares of Series E Preferred Stock were issued in a transaction with the holder of the Company’s previously outstanding shares of Series B Preferred Stock to exchange the shares of Series B Preferred Stock for the shares of Series E Preferred Stock. Pursuant to the exchange agreement for the preferred stock, the holder of the shares of Series B Preferred Stock agreed to waive all unpaid dividends that had accrued on the shares of Series B Preferred Stock. At

June 30, 2018,

the Company had accrued dividends on the Series E Preferred Stock of

$47,979,

which obligation was satisfied through the issuance of 

39,383

shares of common stock in July

2018.

As of

June 30, 2018,

there are

605,000

shares of Series D Convertible Preferred Stock outstanding. The Series D Preferred Stock can be converted by the holders into an aggregate of

619,154

shares of common stock at an initial conversion rate of

$9.77139

per share. The holders of such shares have the right to convert the preferred shares at any time, although the shares received upon conversion

may

not

be offered or sold except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. The Company has the right to repurchase the outstanding Series D Preferred Stock at a redemption price equal to

$10.00

per share, plus accrued and unpaid dividends, and to require holders to convert their Series D Preferred Stock beginning in

June 2016.

Dividends on the Series D Preferred Stock accrue at a rate of

5%

per annum and are payable semi-annually in cash or stock at the Company’s option. At

June 30, 2018,

the Company had accrued dividends on the Series D Preferred Stock of

$936,756,

which obligation was satisfied through the issuance of

94,354

shares of common stock in July

2018.

The Company’s preferred stock takes precedence over common stock but ranks below debt in the event of liquidation. In addition, the Series D Convertible Preferred Stock ranks above the Series E Convertible Preferred Stock.

Common Stock

As discussed in Note

1,

the AEON Acquisition on

January 27, 2016

has been accounted for as a reverse merger under U.S. GAAP. As such, AEON is considered the acquiring entity for accounting purposes and legacy AEON’s historical results of operations replaced legacy AHC’s historical results of operations for all periods prior to the reverse merger. Additionally, the legacy AEON equity accounts at

June 30, 2015

were retroactively restated to reflect the number of shares received in the business combination as defined by Note

3.

Earnings per Share

	Year Ended
	June 30,
	2018			2017
Basic earnings (loss) per share
Net loss	$	(8,000,377	)	$	(32,073,514	)
Preferred stock dividends		(339,756	)		(358,832	)
Net (loss) available to common shareholders after preferred stock dividends	$	(8,340,133	)	$	(32,432,346	)
Weighted average shares used in the computation of basic earnings per share		7,249,370			7,188,900
Loss per share - basic	$	(1.15	)	$	(4.51	)
Dilutive earnings (loss) per share
Earnings (loss) available to common shareholders	$	(8,340,133	)	$	(32,432,346	)
Weighted average shares used in the computation of diluted earnings (loss) per share		7,249,370			7,188,900
Shares used in the computation of diluted earnings (loss) per share		7,249,370			7,188,900
Earnings (loss) per share - diluted	$	(1.15	)	$	(4.51	)
Anti-Dilutive Shares Excluded		7,521,887			5,627,516

Common Stock Warrants

A schedule of common stock warrant activity is as follows:

Warrant Activity	Number of Shares			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value
Outstanding June 30, 2017		4,150,535		$	4.67		3.87	$	42,582
Issued		-
Expired		(691,709	)	$	8.68		-
Outstanding March 31, 2018		3,458,826		$	3.65		3.41	$	-
Exercisable, March 31, 2018		3,403,270		$	3.51		3.46	$	-

Due to the adjustment of the conversion price of the New Senior Notes, the exercise price of outstanding warrants to purchase an aggregate of

825,144

shares of common stock has been adjusted from

$2.07

to

$1.22

per share.

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Note 9 - Share-based Compensation

12 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

9. Share-Based Compensation

Stock option activity under the Company’s stock option plans for employees and non-executive directors for the period ended

June 30, 2018

is as follows:

Employees Information	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Outstanding June 30, 2017		226,902		$	9.04		6.34
Granted		50,000			2.00		9.21
Expired/Forfeited		(11,556	)		23.40		--
Outstanding June 30, 2018		265,346			7.08		6.55
Exercisable June 30, 2018		143,917		$	11.50		4.44

						Weighted
				Weighted		Average
				Average		Remaining		Aggregate
	Number of			Exercise		Contractual		Intrinsic
Non-Executive Director Information	Options			Price		Life (Years)		Value
Outstanding June 30, 2017		602,311		$	3.57		6.11	$	-
Granted		45,555			1.59		-	$	-
Expired/forfeited		(102,807	)		5.33		-
Outstanding and exercisable June 30, 2018		545,059		$	3.08		7.75	$	-

Restricted Stock unit activity under the Company’s restricted stock unit plans for employees and non-executive directors for the year ended

June 30, 2018

is as follows:

	Number of RSUs			Weighted Average Grant Date Fair Value
Outstanding June 30, 2017		411,429		$	1.75
Granted		405,391			0.85
Expired/Forfeited		(64,429	)		0.23
Outstanding June 30, 2018		752,391		$	1.31

Share based compensation for RSUs and options for fiscal year

2018

was approximately

$782,000.

On

March 31, 2018,

the Company’s Board of Directors approved the grant of

40,724

restricted stock units to Hanif A. Roshan. In addition, the Board also approved the grant of an aggregate

40,724

restricted stock units to certain other non-executive employees of the Company. All the restricted stock units were granted under the Company’s

2011

Omnibus Equity Incentive Plan, as amended (the

“2011

Plan”). The Board determined that it was appropriate to grant the restricted stock units in consideration of an agreement by Mr. Roshan and the other non-executive employees to accept such compensation in lieu of cash payment of base salary for the

five

-week period ending

March 31, 2018.

On

June 30, 2018

issued

101,971

restricted stock units to Hanif A. Roshan. In addition, as of such date, an aggregate of

101,972

restricted stock units were also granted to certain other non-executive employees of the Company. All of the restricted stock units were granted under the Company’s

2011

Plan and will vest on the

one

-year anniversary of the grant date. The restricted stock units were granted in consideration of the agreement by Mr. Roshan and the other non-executive employees to accept such compensation in lieu of cash payment of base salary for the fiscal quarter ended

June 30, 2018.

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Note 10 - Fair Value Measurements and Other Financial Instruments

12 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Fair Value Disclosures [Text Block]

10 . Fair Value Measurements and Other Financial Instruments

The carrying amounts of the Company’s financial assets and liabilities, such as cash, accounts receivable, inventory, prepaid expenses, and other current assets, accounts payable and accrued expenses approximate their fair values because of the short maturity of these instruments.

In connection with the issuance of a convertible promissory note as discussed in Note

8,

the Company evaluated the note agreement to determine if the agreement contained any embedded components that would qualify the agreement as a derivative. The Company identified certain put features embedded in the convertible note agreement that potentially could result in a settlement in the event of a fundamental transaction, requiring the Company to classify the conversion feature as a derivative liability.

The Company’s Level

3

financial liabilities consist of the derivative conversion features of underlying convertible debt and warrants issued in

2011

to

2015.

The Company valued the conversion features using the Black Scholes model prior to the

three

months ended

September 30, 2016

and the Monte Carlo model for all periods thereafter. These models incorporate transaction details such as the Company’s stock price, contractual terms maturity, risk free rates and volatility as of the date of issuance and each balance sheet date. The decrease in the value of the conversion feature of convertible debt and warrants issued was primarily due to the decrease in the stock price during

2018

compared to prior years.

The Company utilized the following assumptions in valuing the derivative conversion features:

Exercise Price	$1.20	–	$1.22
Risk free interest rate	2.30%	-	2.70%
Expected volatility	123.0%	-	194.0%
Remaining term (in years)	0.72	–	5.07

Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis

The fair value of the Company’s financial instruments, using the fair value hierarchy under U.S. GAAP detailed in “Fair Value Measurements” in Note

2,

“Summary of Significant Accounting Policies and Recently Issued Accounting Standards,” of the Notes to the Consolidated Financial Statements are included in the table below.

The Company uses Level

3

of the fair value hierarchy to measure the fair value of the derivative liabilities and revalues its derivative liabilities at every reporting period and recognizes gains or losses in the statements of operations that are attributable to the change in the fair value of the derivative liabilities. Changes in the observable input values would likely cause material changes in the fair value of the Company’s Level

3

financial instruments. The significant unobservable input (probability of a down round event) used in the fair value measurement is the estimation of the likelihood of the occurrence of a change in the contractual terms of the financial instruments. A significant increase (decrease) in this likelihood or in the volatility assumptions would result in a higher (lower) fair value measurement.

The following tables provide a summary of the changes in fair value, including net transfers in and/or out, of all financial assets / (liabilities) measured at fair value on a recurring basis using significant unobservable inputs during the year ended

June 30, 2018.

			Convertible
	Warrants		Notes		Total
Balance - June 30, 2017	$	435,036	$	116,004	$	551,040
Change in fair value of derivative liabilities		70,033		702,552		772,585
Balance - June 30, 2018	$	505,069	$	818,556	$	1,323,625

	Fair value		Level 1		Level 2		Level 3
June 30, 2017 Derivative liabilities	$	551,040	$	-	$	-	$	551,040
June 30, 2018 Derivative liabilities	$	1,323,625	$	-	$	-	$	1,323,625

D

erivative Instruments

The Company evaluates its convertible debt, warrants or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with ASC

815

-

15,

“

Derivatives and Hedging”

.

The result of this accounting treatment is that the fair value of the embedded derivative is market to market each balance sheet date and recorded as a liability, the change in fair value is recorded in the statements of operations as other income (expense). Upon conversion or exercise of a derivative instrument, the instrument is market to fair value at the conversion date and then that fair value is reclassified to equity.

For the year ended

June 30, 2018,

the Company recorded non-cash expense of approximately (

$773,000

) in other income (expenses) for the change in the fair value of the derivative liabilities.

XML

Note 11 - Commitments and Contingencies

12 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

11 . Commitments and Contingencies

AEON leases its facilities under a lease agreement dated

March 1, 2014,

as amended

January 20, 2016.

The lease, amended, provided for a term of

12

years expiring

March 2026.

	Total		Less than 1 year		1-3 years		4-5 years		More than 5 years
Leases
Operating	$	5,590,001	$	740,000	$	1,542,001	$	1,373,000	$	1,935,000
Capital		12,000		12,000		-		-		-
Total lease obligations		5,602,001		752,000		1,542,001		1,373,000		1,935,000
Total debt obligations		3,364,908		3,364,908		-		-		-
Total obligations	$	8,966,909	$	4,116,908	$	1,542,001	$	1,373,000	$	1,935,000

In the case captioned

Medlogic, LLC and Malena F. Badon v. Peachstate Health

M

anagement, LLC., et al

., now pending in the

15th

Judicial District Court, Lafayette Parish, State of Louisiana, Docket

No.:

2015

-

0151

I, the Company is the defendant in a case where the Plaintiffs, as independent contractors, allege they are owed certain commissions that they purportedly earned while marketing the Company’s products and services. The Company believes the contractors were overpaid and has asserted a counterclaim for reimbursement of such overpayments. The Company intends to vigorously defend the claim and pursue its counterclaim. The parties have completed initial discovery and the matter remains pending. The Company believes the resolution of this matter will

not

have a material effect on its financial statements.

Prior to the completion of the merger, AT&T provided various communication services and equipment to the Company, including facsimile lines. AT&T has claimed that the Company owes approximately

$500,000

to it for such services. The Company continues to negotiate with AT&T to seek a compromise of such amount. To the Company’s knowledge,

no

proceedings have been commenced regarding this matter, and the Company has accrued the full amount of its potential liabilities on its financial statements as of the fiscal year ended

June 30, 2018.

Regarding the termination of the Company’s relationship with certain executives, including the former Chief Executive Officer of Authentidate Holding Corp., O’Connell Benjamin, the Company has been reviewing its severance obligations and the vesting of post-termination provisions. The Company believes it has accrued all related severance costs as of

June 30, 2018

related to past terminations. The former Chief Executive Officer commenced an arbitration proceeding before the American Arbitration Association (“AAA”) on or about

June 22, 2016

requesting severance compensation of

$341,620

and other benefits, including the vesting of certain stock option awards, pursuant to an employment agreement. The parties opted to pursue mediation in their attempt to resolve the matter, and a mediation session was held on

October 30, 2017,

but

no

resolution was reached. The Company believes it has valid defenses to Mr. Benjamin’s claims and intends to defend this matter accordingly as the arbitration process ensues.

On

May 3, 2017,

the Company received notice from the Office for Civil Rights (“OCR”) of the U.S. Department of Health and Human Services (“DHHS”) informing the Company that the OCR is conducting a review of the Company’s compliance with applicable Federal Standards for Privacy of Individually Identifiable Health Information and/or Security Standards for the Protection of Electronic Protected Health Information (“ePHI”). The OCR is the division of DHHS charged with enforcing the Health Insurance Portability and Accountability Act of

1996,

as amended (“HIPAA”), and its privacy, security and data breach rules (“HIPAA Rules”). The OCR compliance review covers both the Company’s telehealth business and its clinical laboratory operations. The OCR reviewed the Company’s premises and conducted interviews on

May 23, 2017

and the Company continues to work on a resolution with the OCR. The OCR

may,

among other things, require a corrective action, issue penalties, or reach a monetary settlement. The Company does

not

expect a material adverse determination on its consolidated financial position, results of operations, and cash flows.

The Company is the plaintiff in a case captioned

Peachstate Health Management, LLC d/b/a Aeon Clinical Laboratories v. Radius Foundation, Inc. and William Bramlett, Ph.D.

, filed on

June 13, 2017,

in the State Court of Hall County, State of Georgia, Case

No.:

2017

-SV-

312

-Z. Judgement in the amount of

$116,865

was awarded by the court on

March 29, 2018,

against the corporate defendant. The Company continues to pursue its claims against the individual co-defendant and is presently negotiating a compromised settlement of all claims with all parties.

The Company is the plaintiff in a case captioned

Peachstate Health Management, LLC d/b/a Aeon Clinical Laboratories v. Trimana LLC d/b/a Via Medical Center

filed on

April 29, 2016,

in the State Court of Hall County, State of Georgia, Case

No.:

2016

-SV-

246D.

Judgement in the amount of

$104,652

was awarded by the Court on

March 12, 2018.

The Company continues to pursue its collection efforts against the defendant.

The Company is the defendant in an action captioned

Cogmedix, Inc. v. Authentidate Holding Corp

. in the Superior Court of Worcester County, Commonwealth of Massachusetts, Case

No.:

1685CV013188.

Suit was filed on

September 6, 2016,

based upon a purchase order dated

December 6, 2013,

alleging the principal amount of

$227,061,

and accumulating interest and attorney fees. On

February 15, 2018,

judgement in the amount of

$320,638

was awarded. The Company is seeking to reach a mutually amicable settlement with the plaintiff.

The Company, its Chief Executive Officer, and certain yet identified persons are defendants in a case captioned

Carlotta Miraflor v. Peachstate Health Management, LLC d/b/a Aeon Global Health, et al

., filed on

October 4, 2017

in the United States District Court for the Central District of California, Case

No.:

5:17

-CV-

02046

-DSF-SP. Service of the Summons and Complaint was made on

January 3, 2018

and an Answer denying liability was timely filed with the Court Clerk. The plaintiff is a principal of a corporate independent contractor which planned to provide marketing services to the Company pursuant to a services agreement. The lawsuit was preceded by a Dismissal and Notice of Rights by the U.S. Equal Employment Opportunity Commission in

July 2017,

on the basis that the Plaintiff was determined to be a principal of a corporate independent contractor. Notwithstanding this ruling the Plaintiff has initiated suit alleging wrongful termination, retaliation, harassment, and other claims. The lawsuit seeks monetary damages for Plaintiff’s alleged loss of earnings, emotional distress, punitive damages, and attorneys’ fees and costs. The Company believes it has strong defenses to Plaintiff’s allegations and intends to vigorously defend the claim. Management is unable to determine at this time whether this claim will have a material adverse impact on the Company’s financial condition, results of operations, or cash flow.

On

September 15, 2015

the Company executed an amendment to the lease for its replacement offices in New Jersey. The term of the lease was for

six

years with annual rentals ranging from approximately

$135,000

in the

first

year to

$148,000

in the final year. The lease provided the Company with opportunities for its early termination by the tender of a pre-negotiated amount on the

18th,

27

th

, and

36

th

month anniversary dates of the amendment. As part of the lease’s terms, the Company provided a letter of credit in the approximate amount of

$121,000

as security for its lease payments. In

July

of

2017

the Company vacated the premises, and the landlord took possession of both the premises and the aforementioned letter of credit monies in the

first

quarter of fiscal year

2018.

The Company is evaluating its possible lease obligations and considering its alternatives, and, although

not

guaranteed, expects to be successful.

The Company is also subject to claims and litigation arising in the ordinary course of business. Our management considers that any liability from any reasonably foreseeable disposition of such claims and litigation, individually or in the aggregate, would

not

have a material adverse effect on our consolidated financial position, results of operations or cash flows.

The Company has entered into various agreements by which we

may

be obligated to indemnify the other party with respect to certain matters. Generally, these indemnification provisions are included in contracts arising in the normal course of business under which we customarily agree to hold the indemnified party harmless against losses arising from a breach of representations related to such matters as intellectual property rights. Payments by us under such indemnification clauses are generally conditioned on the other party making a claim. Such claims are generally subject to challenge by us and to dispute resolution procedures specified in the contract. Further, our obligations under these arrangements

may

be limited in terms of time and/or amount and, in some instances, we

may

have recourse against

third

parties for certain payments made by us. It is

not

possible to predict the maximum potential amount of future payments under these indemnification agreements due to the conditional nature of our obligations and the unique facts of each agreement. Historically, we have

not

made any payments under these agreements that have been material individually or in the aggregate. As of

June 30, 2018,

we are

not

aware of any obligations under such indemnification agreements that would require material payments.

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Note 12 - Related Party

12 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

12. Related Party

Except as disclosed herein, the Company has

not

entered into any material transactions or series of similar transactions with any director, executive officer or any security holder owning

5%

or more of common stock since

July 1, 2017.

AEON leases its facilities from Centennial Properties of Georgia, LLC under a lease agreement commencing

April 2014,

as amended

January 20, 2016.

The lease provides for a term of

12

years expiring

March 2026.

The lease payments range from

$46,500

to a maximum of

$60,000.

In connection with the lease agreement, as security for its rent and other obligations under the lease, AEON has provided to the landlord a

first

priority lien and security interest in substantially all its assets. The landlord under the lease is Centennial Properties of Georgia, LLC a Georgia limited liability company. Centennial is owned by Sonny Roshan, Shawn Desai, Pyarali Roy and Sohail Ali, all of whom are either former members, or spouses of former members, of AEON and have received and

may

in the future receive common stock from the AEON Acquisition. Mr. Roshan serves as the Chairman and Chief Executive Officer of AGHC. Mr. Desai is the Chief Technology Officer of AEON. Mr. Roy is the Chief Strategy Officer of AEON. Related party rent expense was

$580,500

and

$562,500

for the fiscal years ended

June 30, 2018

and

2017,

respectively.     

The Company holds certain related party notes payable to certain shareholders, its Chief Executive Officer and affiliates of board members of the Company, as detailed in Note

14.

Interest expense relating to these notes amounted to approximately

$42,000

and

$42,000

for the fiscal years ended

June 30, 2018

and

2017,

respectively. In the Note Amendment Transaction, the holders (the “Senior Holders”) of the outstanding principal amount of

$2,545,199

of Senior Notes entered into a consent and amendment agreement with the Company (the “Consent Agreement”), pursuant to which the Senior Notes were amended to extend the maturity date for a period of

twelve

months to

March 20, 2019

and in consideration thereof, the conversion rate of the Senior Notes was reduced to

$1.20

per share. Based on the adjusted conversion price, the principal amount of the Senior Notes was convertible into up to

2,120,999

shares of common stock. The other material terms and conditions of the Senior Notes were

not

amended. Certain holders of the New Senior Notes are affiliated with the Company as follows: (i) an aggregate principal amount of

$255,417

of Senior Notes are held by Hanif A. Roshan, the Chairman and Chief Executive Officer of the Company and (ii) an aggregate principal amount of

$591,613

of Senior Notes are held by Optimum Ventures, LLC, a party affiliated by ownership with the former owners of Peachstate Health Management, LLC, our subsidiary. Due to the adjustment of the conversion price of the Senior Notes, the exercise price of outstanding warrants to purchase an aggregate of

825,144

shares of common stock has been adjusted from

$2.07

to

$1.22

per share. Unpaid interest on the Senior Notes as of

June 30, 2018

was approximately

$155,000,

which is

not

incorporated into the principal balance. Accrued interest on the New Senior Notes is due on

March 20, 2019

or any earlier payment of the Senior Notes.

Effective

January 23, 2018,

Hanif A. Roshan, the Company’s Chief Executive Officer and Chairman of the Board made a short-term loan of

$500,000

to the Company. To evidence the loan, the Company issued Mr. Roshan a promissory note (the “Note”) in the aggregate principal amount of

$500,000.

The Note was an unsecured obligation of the Company and was

not

convertible into equity securities of the Company. The Note was due and payable on

April 23, 2018

and interest accrued on the Note at the rate of

5%

per annum. The Note was exchanged for a secured convertible note in the exchange transaction described above in Note

8

under the caption “Current Year Exchange Transaction”.

                     As discussed in Note

14

to these Consolidated Financial Statements, the Company restructured the Senior Notes held by Mr. Roshan and Optimum Ventures and exchanged the Senior Notes held by them for senior secured Grid Notes.

The Company entered into a lease agreement with Hanif A. (“Sonny”) Roshan (the “landlord”) for a residential premises at

5455

Golf view Drive, Braselton, Georgia

30517

for a term of

one

year beginning on

January 1, 2018

and ending on

December 31, 2018

for a fixed rent in monthly installments of

$7,500

due and payable by the

first

day of each month. The lease is renewable with a

3%

increase in rent for each renewal. The tenant is responsible for utilities and insurance with the landlord responsible for maintenance and taxes on the premises. Rent expense was

$90,000

for the fiscal year ended

June 30, 2018.

Certain of the Company's affiliates, including members of its senior management and board, as well as their respective family members and other affiliates, have relationships and agreements among themselves as well as with the Company and its affiliates, that create the potential for both real, as well as perceived, conflicts of interest.  These include certain with which the Company does business.  The Company does business with Kemah Palms, an entity that is majority owned by the Company's Chairman and CEO, Sonny Roshan.  AEON generated approximately $

10,000

in revenue from Kemah Palms in fiscal 2018.

.

               On

September 18, 2018,

the Company and its wholly-owned subsidiary, Peachstate Health Management LLC, entered into a shared services agreement with Centennial Properties, LLC, an entity affiliated with the Company’s chief executive officer and which is the owner of the premises in which the Company conducts its operations. Pursuant to this agreement, in consideration of various services and accommodations provided by Centennial Properties, the Company and Peachstate Health Management agreed to provide, or cause to be provided, certain operational and administrative support services to Centennial Properties and certain other related entities. Under this agreement, in

no

event shall any employee of the Company or Peachstate Health Management be required to devote more than

10%

of such employee’s business time per week to the provision of services to Centennial Properties. The shared services agreement has a term of

three

years.

           An entity affiliated with the Company’s Chief Executive Officer extended a personal loan of

$500,000

to an entity affiliated with a distributor and business consultant to the Company. The borrower has agreed to repay the loan by assigning a percentage of the net proceeds received by the affiliated distributor as commissions under its distribution agreement. 

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Note 13 - Segment Information

12 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

13 . Segment Information

The Company is operated as

two

segments: (i) laboratory testing services (AEON), and (ii) web-based software (AHC). Laboratory testing services includes the testing of an individual’s blood, urine or saliva for the presence of drugs or chemicals and the patient’s DNA profile. Web-based software provide secure web-based revenue cycle management applications and telehealth products and services that enable health care organizations to increase revenues, improve productivity, reduce costs, coordinate care for patients and enhance related administrative and clinical workflows and compliance with regulatory requirements. Management currently runs each segment separately and measures profitability and operational performance based on the financial records independently maintained by

two

separate systems.  

Select financial information related to the Company’s segments is presented below:

	Authentidate			AEON		Total
Year ended June 30, 2018
Net revenues		991,863		$	15,309,281	$	16,301,144
Cost of revenues		194,596			3,607,578		3,802,174
Operating expenses		2,465,128			14,616,552		17,081,680
Operating income (loss)		(1,473,265	)		692,729		(780,536	)
Year ended June 30, 2017
Net revenues	$	1,286,697		$	18,912,074	$	20,198,771
Cost of revenues		1,178,586			3,021,859		4,200,445
Operating expenses		8,048,427			17,529,642		25,578,069
Operating income (loss)		(6,761,730	)		1,382,432		(5,379,298	)
June 30, 2018
Total assets	$	7,532,512		$	3,442,743	$	10,975,255
June 30, 2017
Total assets	$	11,772,871		$	4,958,807	$	16,731,678

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Note 14 - Subsequent Events

12 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Subsequent Events [Text Block]

14. Subsequent Events

On

June 18, 2018,

the Company’s Board of Directors Board of Directors declared and authorized payment of accrued dividends on itsoutstanding shares of Series D Convertible Preferred Stock in the aggregate amount of

$936,756

and a dividend of the outstanding shares of its Series E Convertible Preferred Stock in the aggregate amount of

$47,979.

The common stock dividends were issued subsequent to

June 30, 2018.

The Board determined to issue the dividends on the Series D Preferred Stock through the issuance of additional shares of common stock, in accordance with the terms and conditions of the Certificate of Designations, Preferences and Rights and Number of Shares of Series D Convertible Preferred Stock.   The Company issued an aggregate of

94,354

shares of common stock in satisfaction of the dividends accrued on the Series D preferred stock. The holder of the Series E Preferred Stock agreed to accept issuance of the dividend through the issuance of shares of common stock and the Company issued

39,383

shares of common stock in in satisfaction of the dividends accrued on the Series E preferred stock.

On

July 19, 2018,

the Company entered into the Settlement and Restructuring Agreement (the “Settlement Agreement”) with Peachstate Health Management, LLC (“AEON”), its wholly-owned subsidiary, and the former members of AEON included in the Agreement (the “Former Members”), including its Chief Executive Officer, Hanif A. Roshan. Pursuant to the Agreement, the parties agreed to, among other things, resolve certain disagreements among themselves relating to the interpretation of certain provisions of the Merger Agreement.

The Merger Agreement included, among other things, certain earn-out consideration (the “Earn-out”) and the assumption of certain liabilities. The Earn-out required the achievement of certain earnings before interest, taxes, depreciation and amortization (“EBITDA”) levels that were automatically adjusted upon the change of reimbursement rates adopted by the Centers for Medicare and Medicaid Services. Upon achievement of the EBITDA level for the

three

calendar years ending

December 31, 2018 (

“2018

Earn-out”), the Former Members would receive additional shares of the Company’s common stock so that the total number of shares of the Company’s common stock issued to the Former Members pursuant to the Merger Agreement would equal

85%

of the issued and outstanding shares of the Company’s common stock on a post-issuance and fully-diluted (as defined in the Merger Agreement) basis. In addition, the Merger Agreement provided that upon achievement of the EBITDA level for the

four

calendar years ending

December 31, 2019 (

“2019

Earn-out”), the Former Members would receive additional shares of the Company’s common stock so that the total number of shares of the Company’s common stock issued to them pursuant to the Merger Agreement would equal

90%

of the issued and outstanding shares of the Company’s common stock on a post-issuance and fully-diluted (as defined in the Merger Agreement) basis. The Former Members were also granted certain registration rights pursuant to the Merger Agreement (the “Registration Rights”), which remain outstanding. Achievement of the maximum amount of Earn-out would have resulted in the issuance of over

70,000,000

shares of the Company’s common stock.

Subsequently, in connection with the Merger, the parties expressed differences of opinion on the interpretation of certain provisions of the Merger Agreement, the calculation of the number of shares of common stock issued pursuant to the initial tranches of the Earn-out under the Merger Agreement, and the assumption of income tax liabilities for undistributed income earned by AEON prior to the Merger. The Company has also incurred tive cash flow for the calendar years

2016

and

2017,

necessitating the loan of approximately

$760,000

by the Company’s Chief Executive Officer in addition to an amount of

$591,613,

including accrued interest, previously loaned by an entity owned by certain of the Former Members (collectively the “Loans”), which Loans have been extended on multiple occasions. The Loans were due and payable on

March 20, 2019

and are convertible into common stock at

$1.20

per share (currently

1,126,235

shares). In addition, the Chief Executive Officer and certain of the Former Members reduced their cash compensation as employees to

zero

and have been accepting restricted stock units of the Company as sole compensation.

The Company, AEON and the Former Members reached an agreement to resolve these matters and entered into the Settlement Agreement in order to: (i) provide a source of working capital to the Company to sustain operations and reduce the additional dilution which could have been caused by the conversion of the Loans; (ii) remove the uncertainty as to the number of shares which

may

be issued pursuant to the

2018

and

2019

Earn-outs by replacing percentages with fixed share amounts; (iii) agree that all share calculations for the Earn-outs are to be based on actual shares outstanding rather than on a “fully-diluted” basis to provide additional certainty and reduce the potential issuances on account of the Merger from approximately

70,000,000

shares of common stock to approximately

1,200,000

shares of common stock; (iv) provide clarity as to the relationship between the

2018

Earn-out and

2019

Earn-out; (v) reduce the maximum percentage ownership of the Former Members ; (vi) avoid the expense of a demand registration statement; and (vii) otherwise resolve all outstanding disagreements among the parties arising out of the Merger Agreement.

As a condition to the effectiveness of the Settlement Agreement, the parties agreed to restructure the Loans to exchange the existing notes held by such persons for a new senior credit instrument pursuant to which the lenders would provide up to

$2.0

million of credit to Company (the “Note Restructuring Transaction”). A summary of the Note Restructuring Transaction is set forth below.

The parties also resolved all interpretative issues relating to the Merger Agreement and clarified the amount and terms of the Earn-outs as described below.

With respect to the

2018

Earn-out, the parties agreed that the

2018

Earn-out, as adjusted according to the Merger Agreement, shall be

$21,483,749

of EBITDA for the

three

calendar years ending

December 31, 2018.

If the

2018

Earn-out target is achieved, then on

October 1, 2019

, subject to the completion of the audited financial statements of AEON for the calendar year ending

December 31, 2018,

 the Company shall issue the Former Members a fixed amount of

3,000,000

shares of the Company’s common stock; provided, however, that if AEON does

not

achieve the

2018

Earn-out target, but achieves EBITDA for the

three

calendar years ending

December 31, 2018

of at least

75%

of the

2018

Earn-out target, then on

October 1, 2019, subject to the completion of the audited financial statements of AEON for the calendar year ending December 31, 2018, 

the Company shall issue the Former Members a fixed amount of

2,250,000

shares of the Company’s common stock.

With respect to the

2019

Earn-out, the parties agreed that the

2019

Earn-out, as adjusted according to the Merger Agreement, shall be

$32,600,530

of EBITDA for the

four

calendar years ending

December 31, 2019.

If the

2019

Earn-out target is achieved, then within

three

business days following the completion of the audited financial statements of AEON for the calendar year ending December

31,

2019,

the Company shall issue the Former Members a fixed amount of

4,000,000

shares of the Company’s common stock. If AEON fails to achieve the

2019

Earn-out target, but achieves EBITDA for the

four

calendar years ending

December 31, 2019

of at least

75%

of the

2019

Earn-out target, then within

three

business days following the completion of the audited financial statements of AEON for the calendar year ending December

31,

2019,

 the Company shall issue the Former Members a fixed amount of

3,000,000

shares of the Company’s common stock.

The parties also agreed that if the

2019

Earn-out target is achieved the Former Members would be entitled to an “earn-out credit” equal to the amount by which such target is exceeded. If AEON did

not

achieve the

2018

Earn-out target (or the adjusted

2018

Earn-out target), the earn-out credit would be applied to its EBITDA for the

2018

Earn-out and then the determination of whether the

2018

Earn-out was achieved (at either the full or the

75%

level) will be recomputed. If the addition of the earn-out credit results in AEON achieving the

2018

Earn-out (at either level) then several additional shares of common stock shall be issued to the Former Members in accordance with the terms of the Settlement Agreement.

The Company also agreed that in consideration of the restructuring of the consideration due to the Former Members under the Merger Agreement, it shall issue an aggregate of

2,500,000

shares of the Company’s common stock to the Former Members. Such additional shares shall be issued to the Former Members

pro rata

based on their respective percentage ownership of AEON prior to the Merger and shall be deemed earned and issued on

February 28, 2019.

As additional consideration to the Company under the Settlement Agreement, the Former Members agreed: (i) to relinquish all demand registration rights; (ii) that the arrangements set forth in the Settlement Agreement fully resolved any and all claims arising out of the Merger Agreement and the transactions contemplated thereby; and (iii) to a general release of claims as against the Company.

Note Restructuring Transaction

As a condition to the effectiveness of the Settlement Agreement, the parties further agreed to restructure the loans previously made to the Company by Mr. Roshan and Optimum Ventures, LLC, (together, the “Lenders”) and to exchange the existing notes held by them for a new senior credit instrument pursuant to which they will provide up to

$2.0

million of credit to Company (the “Note Restructuring Transaction”). In the Note Restructuring Transaction, the Company entered into a note exchange agreement dated

July 19, 2018 (

the

“July

Exchange Agreement”), with the Lenders, who collectively held senior secured convertible notes in the aggregate principal amount of

$1,351,482

(the “Original Notes”).

Pursuant to the

July

Exchange Agreement, the Company agreed to issue the Lenders new senior secured grid notes in the aggregate principal amount for a maximum of

$2.0

million (the “Grid Notes”) in consideration of the cancellation of their Original Notes. The Grid Notes are structured to provide the Company with a credit facility pursuant to which it can borrow, pay, and re-borrow any portion of the maximum principal amount of credit available under these instruments. The Grid Notes are senior, secured obligations and are

not

convertible into any equity securities of the Company. The Grid Notes bear interest at the rate of

7.5%

per annum with interest payable upon maturity or sooner in accordance with the prepayment mechanism of the Grid Notes. The maturity date of the Grid Notes is

June 30, 2020.

The Grid Notes are on parity with an outstanding principal amount of

$1,698,169

of other senior secured convertible notes (the “Senior Convertible Notes”) and, subject to certain exceptions, are senior to other existing and future indebtedness of the Company and, together with the Senior Convertible Notes, will be secured by a

first

priority lien on all of the Company’s assets to the extent and as provided in a Security Agreement entered into between the Company, the Lenders and the holders of the Senior Convertible Notes (the “Convertible Note Holders”). The Grid Notes contain customary covenants against incurring additional indebtedness and granting additional liens and contains customary events of default, which terms are substantially the same as the corresponding provisions of the Original Notes. Upon the occurrence of an event of default under the Grid Notes, the Lenders

may

require the Company to repay all or a portion of the note in cash, at a price equal to

110%

of the principal, plus accrued and unpaid interest.

The Grid Notes are being issued in consideration of the exchange of (i) an aggregate principal amount of

$759,869

of Original Notes held by Mr. Roshan and (ii) an aggregate principal amount of

$591,613

of Original Notes held by Optimum Ventures, LLC. Upon the closing, a Grid Note was issued to each of the Lenders in a maximum principal amount based on the relative percentages of the Original Notes that were held by them. The maximum principal amount under the Grid Note issued to Mr. Roshan is

$1,100,000

and the maximum principal amount under the Grid Note issued to Optimum is

$900,000.

Each Grid Note issued also reflects an outstanding principal amount equal to the sum of the aggregate principal amount of the Original Notes held by each Lender, plus the accrued but unpaid interest thereon. The closing of the Note Restructuring Transaction occurred on

July 19, 2018.

In connection with the Note Restructuring Transaction, the Company entered into a consent and amendment agreement with the Convertible Note Holders to obtain their consent to the issuance of the Grid Notes. In consideration thereof, the Company and Convertible Note Holders also agreed to extend the maturity date of the Senior Convertible Notes for a period of

one

year to

March 20, 2020

and to modify the redemption mechanism of such instruments by increasing the duration of the redemption notice period defined in the Senior Convertible Notes. In addition, the parties entered into an amendment to the Amended and Restated Security Agreement entered into as of

March 20, 2017,

as previously amended (the “Security Agreement”), to provide that the Grid Notes shall be secured by the collateral defined in such earlier Security Agreement.

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Significant Accounting Policies (Policies)

12 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The most sensitive accounting estimates affecting the financial statements are revenue recognition, the allowance for doubtful accounts, depreciation of long lived assets, income taxes and associated deferrals and valuation allowances, commitments and contingencies and measurement of derivative liabilities.

Trade and Other Accounts Receivable, Policy [Policy Text Block]

Accounts Receivable, Net

Accounts receivable represent customer obligations due under normal trade terms, net of allowance for doubtful accounts. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience and other currently available evidence. The allowance for doubtful accounts was approximately

$942,000

and

$984,000

as of

June 30, 2018

and

2017,

respectively.

Fair Value Measurement, Policy [Policy Text Block]

Fair Value Measurements

The Company follows Accounting Standards Codification (“ASC)

820

-

10

“

Fair Value Measurements and Disclosures

”, of the FASB to measure the fair value of its financial statements and disclosures about fair value of its financial instruments. ASU

820

-

10

establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, ASC

820

-

10

establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into

three

broad levels. The

three

levels of fair value hierarchy defined by ASC

820

-

10

are described below:

Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date.

Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.

Level 3 Pricing inputs that are generally unobservable input and not corroborated by market data.

The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lower priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than

one

level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The Company’s warrant liabilities and certain conversion features underlying the convertible debt are categorized as Level

3.

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

The Company provides laboratory testing services, web-based hosted software services, telehealth products and post contract customer support services.

In accordance with Financial Accounting Standards Board (“FASB”) ASC-

605

“Revenue Recognition”,

the Company recognizes revenues when there is a persuasive evidence of an arrangement, title and risk of loss have passed, the product was shipped or services have been rendered, sales price is fixed or determinable and collection of the related receivable is reasonably assured. Billings for laboratory testing services are reimbursed by

third

-party payors net of allowance for differences between amounts billed and the cash receipts.

Revenue from laboratory testing services are recognized at the time test results are delivered, net of estimated contractual allowances. Revenues for services paid by

third

-party payers, including Medicare and Medicaid, are recorded as revenues net of allowances for differences between amounts bill and the estimated receipts from such payers.  Adjustments to the allowances, based on actual receipts from the

third

-party payers, are recorded upon settlement.

Revenue for hosted software services, telehealth products, and customer support services are recognized when persuasive evidence of an arrangement exists, delivery has occurred, the selling price is fixed, and collectability is reasonably assured.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration and Credit Risk

The Company maintains its cash in bank deposit accounts which, at times,

may

exceed federally insured limits. Accounts are guaranteed by the Federal Deposit Insurance Corporation (FDIC) up to certain limits. The Company had approximately

$473,000

and

$871,000

over FDIC-insured limits as of

June 30, 2018

and

2017,

respectively. The Company has

not

experienced any losses in such accounts.

At

June 30, 2018,

one

customer had an accounts receivable balance of approximately

$1,270,000.

This customer had a minimal balance at

June 30, 2017.

This customer’s accounts receivable balance comprises

37%

of gross accounts receivable at

June 30, 2018.

Income Tax, Policy [Policy Text Block]

Income Taxes

The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. In estimating future tax consequences, the Company generally considers all expected future events other than enactments of changes in tax laws or rates. The effect on deferred tax assets and liabilities of a change in tax rates will be recognized as income or expense in the period that includes the enactment date. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized.

Prior to the reverse merger, AEON elected to be taxed as an S Corporation for federal and certain state income tax purposes. Under this election substantially all the profits, losses, credits and deductions of the Company are passed through to the individual shareholders. Therefore prior to the reverse merger

no

provision or liability for income taxes has been included in these consolidated financial statements except for state and localities where the S Corporation status has

not

been recognized.

Prior to the reverse merger, AGHC tax benefits were fully offset by a valuation allowance due to the uncertainty that the deferred tax assets would be realized. Due to the reverse merger a deferred tax asset was recorded since it was determined the realization of some of these assets is more likely than

not,

due to consolidated earnings resulting in the expected usage of net operating loss carryforwards.

At

June 30, 2018,

the Company concluded that a significant portion of the deferred tax assets would

not

be realized. An increase to the valuation allowance was added in fiscal year

2018

of

$6,031,702

resulting in a deferred tax asset of

$5,816,315

at

June 30, 2018

versus

$11,848,017

at

June 30, 2017.

The valuation allowance was increased in

December 2017

due to the change in the Tax Cuts and Jobs Act. The remaining increase was the result of the Company’s expiration of net operating losses, which caused a portion of the DTA to be unusable.

Under income tax regulations in the United States AGHC is the acquirer of AEON. As such the Company must file a consolidated return for both AGHC and AEON for the year ending

June 30, 2016.

The return will include the operating results of AGHC from

July 1, 2015

through

June 30, 2016,

and AEON’s results from

January 27, 2016

through

June 30, 2016.

The Company is in the process of finalizing its

2016

and

2017

tax returns. When filed, both returns will be subject to audit by the Internal Revenue Service.

Management considers the likelihood of changes by taxing authorities in its filed income tax returns and recognizes a liability for or discloses potential changes that management believes are more likely than

not

to occur upon examination by tax authorities. Management has

not

identified any uncertain tax positions in previously filed

2015

income tax returns that require recognition or disclosure in the accompanying consolidated financial statements.

The Company’s policy is to include penalties and interest expense related to income taxes as a component of other expense and interest expense, respectively, as necessary.

Reclassification, Policy [Policy Text Block]

Reclassification

Certain prior year amounts have been reclassified to conform to the current year presentation.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

In

May 2014,

the FASB issued ASU

2014

-

09,

“Revenue from Contracts with Customers

”

(Topic

606

). This accounting standard outlines a single comprehensive model to use in accounting for revenue arising from contracts with customers. This standard supersedes existing revenue recognition requirements and eliminates most industry specific guidance from GAAP. The core principle of the revenue recognition standard is to require an entity to recognize as revenue the amount that reflects the consideration to which it expects to be entitled in exchange for goods or services as it transfers control to its customers. As of the date of this report, management has substantially completed the analysis related to the impact of adopting this standard. Accordingly, the Company will report uncollectible balances associated with customer responsibility as a reduction of the transaction price and a reduction in net revenues. In addition, the adoption of this new accounting standard will likely result in increased disclosure, including qualitative and quantitative disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company has adopted this ASU effective

July 1, 2018,

and this adoption will have an immaterial impact on the financial statements; however, adoption of this new ASU will require significantly enhanced disclosures for the Company. The Company plans to use the modified retrospective method for implementation.

               In

February 2016,

FASB issued ASU

2016

-

02,

Leases, which introduces the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. The guidance will be effective for annual reporting periods beginning after

December 15, 2018

and interim periods within those fiscal years with early adoption permitted. The guidance will be applied on a modified retrospective basis with the earliest period presented. Based on the effective date, this guidance would apply beginning

July 2019

which is when we plan to adopt this ASU. While we are still in the process of evaluating the effect of adoption on our consolidated financial statements and are currently assessing our leases, we do

not

expect the adoption will lead to a material increase in the assets and liabilities recorded on our consolidated balance sheet.

In

August 2016,

the FASB issued ASU

2016

-

15,

“Statement of Cash Flows (Topic

230

): Classification of Certain Cash Receipts and Cash Payments,”

which clarifies how certain cash receipts and payments are to be presented in the statement of cash flows. The guidance is effective for the Company on

July 1, 2018

and early adoption is permitted.

In

May 2017,

the FASB issued ASU

2017

-

09,

“Compensation-Stock Compensation (Topic

718

): Scope of Modification Accounting”

, which amends the scope of modification accounting for share-based payment arrangements, provides guidance on the types of changes to the terms or conditions or share-based payment awards to which an entity would be required to apply modification accounting. The ASU is effective for annual reporting periods, including interim periods within those annual reporting periods, beginning after

December 15, 2017.

The Company has adopted this ASU, and it does

not

expect it to have a material impact on the fiscal year

2019

financial statements.

In

July 2017,

the FASB issued ASU

2017

-

11,

“Earnings Per Share (Topic

260

), Distinguishing Liabilities from Equity (Topic

480

) and Derivatives and Hedging (Topic

815

); Part I. Accounting for Certain Financial Instruments with Down Round Features and Part II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception”,

which states that when determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature

no

longer precludes equity classification when assessing whether the instrument is indexed to the Company’s own stock. As a result, a freestanding equity-linked financial instrument (or embedded conversion option)

no

longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic

260

to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. The Company is evaluating the provisions of this ASU and plans to adopt this ASU effective

July

1,2019.

In

December 2017,

the Securities and Exchange Commission issued Staff Accounting Bulletin

No.

118,

which is an application of ASC Topic

740,

Income Taxes

, in the reporting period that includes

December 22, 2017,

the date on which the Tax Cuts and Jobs Act (the “Act”) was signed into law. The Act changes existing United States tax law and includes numerous provisions that will affect business. Staff Accounting Bulletin

No.

118

implies that if a reasonable estimate can be made of the Act’s effects on the Company’s financial statements, the reasonable estimate should be reported in the period ending after

December 22, 2017.

The Company has implemented Staff Accounting Bulletin

No.

118

during fiscal year

2018

by revaluing its deferred tax asset for the lower tax rates.

In

August 2018,

the FASB issued ASU

2018

-

13,

“

Fair Value Measurement (Topic

820

): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement

”, which adds disclosure requirements to Topic

820

for the range and weighted average of significant unobservable inputs used to develop Level

3

fair value measurements.  The Company is evaluating the provisions of this ASU and plans to adopt this ASU effective

July 1, 2020.

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Note 3 - Inventory (Tables)

12 Months Ended

Jun. 30, 2018

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	June 30,
	2018		2017
Laboratory testing supplies	$	453,129	$	347,750
Total inventory	$	453,129	$	347,750

XML

Note 4 - Property, Plant and Equipment (Tables)

12 Months Ended

Jun. 30, 2018

Notes Tables

Property, Plant and Equipment [Table Text Block]

							Estimated
	June 30,						Useful Life
	2018			2017			In Years
Machinery and equipment	$	5,416,686		$	5,397,737		3	-	6
Software		393,383			392,913		5	-	7
Furniture and fixtures		105,662			105,043		5	-	7
Leasehold improvements		69,268			69,268			(1)
		5,984,999			5,964,961
Less: Accumulated depreciation and amortization		(4,563,902	)		(3,761,418	)
Property and equipment, net	$	1,421,097		$	2,203,543

XML

Note 5 - Intangible Assets (Tables)

12 Months Ended

Jun. 30, 2018

Notes Tables

Schedule of Intangible Assets and Goodwill [Table Text Block]

	June 30, 2018								June 30, 2017
	Gross Carrying Amount		Accumulated Amortization		Impairment		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Impairment		Net Book Value		Useful Life In Years
Trademarks	$	550,000	$	111,310	$	438,690	$	-	$	550,000	$	111,310	$	438,690	$	-	7
Acquired tech		1,794,000		416,014		1,377,986		-		1,794,000		416,014		1,377,986		-	7
Total	$	2,344,000	$	527,324	$	1,816,676	$	-	$	2,344,000	$	527,324	$	1,816,676	$	-
Goodwill	$	3,318,000			$	3,318,000			$	3,318,000			$	3,318,000

XML

Note 6 - Income Taxes (Tables)

12 Months Ended

Jun. 30, 2018

Notes Tables

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	Year Ended June 30,
	2018			2017
Current:
Federal	$	-		$	-
State		65,203			4,000
Total current		65,203			4,000
Deferred:
Federal		6,073,218			26,613,369
State		(41,519	)		30,412
Total deferred		6,031,699			26,643,781
Income tax provision	$	6,096,902		$	26,647,781

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	Year Ended June 30,
	2018					2017
Income taxes at the federal statutory rate	$	(524,386	)	27.55	%	$	(1,844,749	)	34.00	%
State income taxes, net of federal income tax effect		(179,145	)	9.41	%		(143,944	)	2.65	%
Permanent tax differences		(176,818	)	9.29	%		1,135,075		-20.92	%
Impact of rate change of tax cuts and jobs act		3,831,100		-201.27	%		-		0.00	%
Allowance		2,754,909		-144.73	%		27,500,720		-506.86	%
NOL expiration		388,978		-20.44	%		-		0.00	%
Other		2,264		-0.12	%		679		0.01	%
	$	6,096,902		-320.31	%	$	26,647,781		-491.14	%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	Year Ended June 30,
	2018			2017
Deferred tax assets:
Accrued compensation	$	424,643		$	615,000
Accounts receivable allowance		238,629			367,000
Intangible assets		148,884			287,000
Other		178,453			237,000
Net operating loss and other carryforwards		40,149,607			60,996,017
Total gross deferred assets		41,140,216			62,502,000
Less: Valuation Allowance		(34,916,654	)		(49,247,000	)
Deferred tax asset after valuation allowance		6,223,562			13,255,017
Deferred tax liabilities:
Depreciation		(197,084	)		(705,000	)
Warrant derivative		(85,268	)		(331,000	)
Change in accounting method		(124,895	)		(371,000	)
Total deferred tax liability		(407,247	)		(1,407,000	)
Net Deferred Tax Asset	$	5,816,315		$	11,848,017

XML

Note 7 - Related Party Notes Payable (Tables)

12 Months Ended

Jun. 30, 2018

Notes Tables

Schedule of Debt [Table Text Block]

	June 30, 2018				June 30, 2017
			Interest rate		Note		Interest rate
	Principal		per annum		Payable		per annum
Secured
	$	1,056,875	5% interest paid annually		$	1,056,875	5% interest paid annually
		641,294	5% interest paid annually			641,294	5% interest paid annually
		255,417	5% interest paid annually			255,417	5% interest paid annually
		591,613	5% interest paid annually			591,613	5% interest paid annually
		504,452	5% interest paid annually
Total	$	3,049,651		Total	$	2,545,199

XML

Note 8 - Equity (Tables)

12 Months Ended

Jun. 30, 2018

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Year Ended
	June 30,
	2018			2017
Basic earnings (loss) per share
Net loss	$	(8,000,377	)	$	(32,073,514	)
Preferred stock dividends		(339,756	)		(358,832	)
Net (loss) available to common shareholders after preferred stock dividends	$	(8,340,133	)	$	(32,432,346	)
Weighted average shares used in the computation of basic earnings per share		7,249,370			7,188,900
Loss per share - basic	$	(1.15	)	$	(4.51	)
Dilutive earnings (loss) per share
Earnings (loss) available to common shareholders	$	(8,340,133	)	$	(32,432,346	)
Weighted average shares used in the computation of diluted earnings (loss) per share		7,249,370			7,188,900
Shares used in the computation of diluted earnings (loss) per share		7,249,370			7,188,900
Earnings (loss) per share - diluted	$	(1.15	)	$	(4.51	)
Anti-Dilutive Shares Excluded		7,521,887			5,627,516

Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]

Warrant Activity	Number of Shares			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value
Outstanding June 30, 2017		4,150,535		$	4.67		3.87	$	42,582
Issued		-
Expired		(691,709	)	$	8.68		-
Outstanding March 31, 2018		3,458,826		$	3.65		3.41	$	-
Exercisable, March 31, 2018		3,403,270		$	3.51		3.46	$	-

XML

Note 9 - Share-based Compensation (Tables)

12 Months Ended

Jun. 30, 2018

Notes Tables

Share-based Compensation, Stock Options, Activity [Table Text Block]

Employees Information	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Outstanding June 30, 2017		226,902		$	9.04		6.34
Granted		50,000			2.00		9.21
Expired/Forfeited		(11,556	)		23.40		--
Outstanding June 30, 2018		265,346			7.08		6.55
Exercisable June 30, 2018		143,917		$	11.50		4.44

						Weighted
				Weighted		Average
				Average		Remaining		Aggregate
	Number of			Exercise		Contractual		Intrinsic
Non-Executive Director Information	Options			Price		Life (Years)		Value
Outstanding June 30, 2017		602,311		$	3.57		6.11	$	-
Granted		45,555			1.59		-	$	-
Expired/forfeited		(102,807	)		5.33		-
Outstanding and exercisable June 30, 2018		545,059		$	3.08		7.75	$	-

Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]

	Number of RSUs			Weighted Average Grant Date Fair Value
Outstanding June 30, 2017		411,429		$	1.75
Granted		405,391			0.85
Expired/Forfeited		(64,429	)		0.23
Outstanding June 30, 2018		752,391		$	1.31

XML

Note 10 - Fair Value Measurements and Other Financial Instruments (Tables)

12 Months Ended

Jun. 30, 2018

Notes Tables

Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

Exercise Price	$1.20	–	$1.22
Risk free interest rate	2.30%	-	2.70%
Expected volatility	123.0%	-	194.0%
Remaining term (in years)	0.72	–	5.07

Schedule of Derivative Liabilities at Fair Value [Table Text Block]

			Convertible
	Warrants		Notes		Total
Balance - June 30, 2017	$	435,036	$	116,004	$	551,040
Change in fair value of derivative liabilities		70,033		702,552		772,585
Balance - June 30, 2018	$	505,069	$	818,556	$	1,323,625

Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis [Table Text Block]

	Fair value		Level 1		Level 2		Level 3
June 30, 2017 Derivative liabilities	$	551,040	$	-	$	-	$	551,040
June 30, 2018 Derivative liabilities	$	1,323,625	$	-	$	-	$	1,323,625

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Note 11 - Commitments and Contingencies (Tables)

12 Months Ended

Jun. 30, 2018

Notes Tables

Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block]

	Total		Less than 1 year		1-3 years		4-5 years		More than 5 years
Leases
Operating	$	5,590,001	$	740,000	$	1,542,001	$	1,373,000	$	1,935,000
Capital		12,000		12,000		-		-		-
Total lease obligations		5,602,001		752,000		1,542,001		1,373,000		1,935,000
Total debt obligations		3,364,908		3,364,908		-		-		-
Total obligations	$	8,966,909	$	4,116,908	$	1,542,001	$	1,373,000	$	1,935,000

XML

Note 13 - Segment Information (Tables)

12 Months Ended

Jun. 30, 2018

Notes Tables

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Authentidate			AEON		Total
Year ended June 30, 2018
Net revenues		991,863		$	15,309,281	$	16,301,144
Cost of revenues		194,596			3,607,578		3,802,174
Operating expenses		2,465,128			14,616,552		17,081,680
Operating income (loss)		(1,473,265	)		692,729		(780,536	)
Year ended June 30, 2017
Net revenues	$	1,286,697		$	18,912,074	$	20,198,771
Cost of revenues		1,178,586			3,021,859		4,200,445
Operating expenses		8,048,427			17,529,642		25,578,069
Operating income (loss)		(6,761,730	)		1,382,432		(5,379,298	)
June 30, 2018
Total assets	$	7,532,512		$	3,442,743	$	10,975,255
June 30, 2017
Total assets	$	11,772,871		$	4,958,807	$	16,731,678

XML

Note 1 - Description of Business, Reverse Merger and Liquidity (Details Textual) - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Aug. 31, 2018	Jun. 30, 2016
Short-term Debt, Total	$ 3,049,651	$ 2,545,199
Cash and Cash Equivalents, at Carrying Value, Ending Balance	723,352	1,121,763		$ 1,414,706
Working Capital (Deficit)	6,613,857
Cash and Cash Equivalents, Period Increase (Decrease), Total	(398,411)	(292,943)
Subsequent Event [Member]
Cash and Cash Equivalents, at Carrying Value, Ending Balance			$ 855,000
Estimated Monthly Operational Requirement			1,200,000
Subsequent Event [Member] | Grid Notes [Member]
Debt Instrument, Face Amount			2,000,000
Secured Debt, Total			1,351,482
Subsequent Event [Member] | Secured Notes Maturing on June 15, 2018 [Member]
Debt Instrument, Face Amount			160,000
Subsequent Event [Member] | Subordinated Secured Note Payable [Member] | Former Chief Financial Officer [Member] | Accrued Expenses [Member]
Due to Related Parties, Total			1,698,169
Secured Convertible Note Payable [Member]
Short-term Debt, Total		$ 2,545,199
Debt Instrument, Face Amount	$ 3,049,651
Secured Convertible Note Payable [Member] | Subsequent Event [Member]
Short-term Debt, Total			$ 3,209,651

XML

Note 2 - Summary of Significant Accounting Policies and Recently Issued Accounting Standards (Details Textual)	12 Months Ended
	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)
Allowance for Doubtful Accounts Receivable, Current, Ending Balance	$ 942,000	$ 984,000
Cash, Uninsured Amount	473,000	871,000
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	6,031,702
Deferred Tax Assets, Net, Noncurrent	5,816,315	$ 11,848,017
One Customer [Member]
Accounts Receivable, Net, Total	$ 1,270,000
Customer Concentration Risk [Member] | Accounts Receivable [Member]
Number of Major Customers	1
Customer Concentration Risk [Member] | Accounts Receivable [Member] | One Customer [Member]
Concentration Risk, Percentage	37.00%

XML

Note 3 - Inventory - Inventory (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017
Laboratory testing supplies	$ 453,129	$ 347,750
Total inventory	$ 453,129	$ 347,750

XML

Note 4 - Property, Plant and Equipment (Details Textual) - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Depreciation, Total	$ 802,000	$ 1,295,000

XML

Note 4 - Property, Plant and Equipment - Property, Plant and Equipment Activity (Details) - USD ($)		12 Months Ended
		Jun. 30, 2018	Jun. 30, 2017
Property, Plant and Equipment, Gross		$ 5,984,999	$ 5,964,961
Less: Accumulated depreciation and amortization		(4,563,902)	(3,761,418)
Property and equipment, net		1,421,097	2,203,543
Machinery and Equipment [Member]
Property, Plant and Equipment, Gross		$ 5,416,686	5,397,737
Machinery and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment, Estimate Useful Life (Year)		3 years
Machinery and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment, Estimate Useful Life (Year)		6 years
Software and Software Development Costs [Member]
Property, Plant and Equipment, Gross		$ 393,383	392,913
Software and Software Development Costs [Member] | Minimum [Member]
Property, Plant and Equipment, Estimate Useful Life (Year)		5 years
Software and Software Development Costs [Member] | Maximum [Member]
Property, Plant and Equipment, Estimate Useful Life (Year)		7 years
Furniture and Fixtures [Member]
Property, Plant and Equipment, Gross		$ 105,662	105,043
Furniture and Fixtures [Member] | Minimum [Member]
Property, Plant and Equipment, Estimate Useful Life (Year)		5 years
Furniture and Fixtures [Member] | Maximum [Member]
Property, Plant and Equipment, Estimate Useful Life (Year)		7 years
Leasehold Improvements [Member]
Property, Plant and Equipment, Gross		$ 69,268	$ 69,268
Property, Plant and Equipment, Estimate Useful Life (Year)	[1]

[1] Lesser of lease terms or estimated useful life

XML

Note 5 - Intangible Assets (Details Textual)	12 Months Ended
	Jun. 30, 2017 USD ($)
Goodwill and Intangible Asset Impairment, Total	$ 5,134,676

XML

Note 5 - Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Finite-Lived Intangible Assets, Gross	$ 2,344,000	$ 2,344,000
Finite-Lived Intangible Assets, Accumulated Amortization	527,324	527,324
Impairment of intangibles		1,816,676
Finite-Lived Intangible Assets, Net Book Value
Goodwill, Gross	3,318,000	3,318,000
Goodwill, Impairment	3,318,000	3,318,000
Trademarks [Member]
Finite-Lived Intangible Assets, Gross	550,000	550,000
Finite-Lived Intangible Assets, Accumulated Amortization	111,310	111,310
Impairment of intangibles	438,690	438,690
Finite-Lived Intangible Assets, Net Book Value
Useful Life In Years (Year)	7 years
Acquired Technologies [Member]
Finite-Lived Intangible Assets, Gross	$ 1,794,000	1,794,000
Finite-Lived Intangible Assets, Accumulated Amortization	416,014	416,014
Impairment of intangibles	1,377,986	1,377,986
Finite-Lived Intangible Assets, Net Book Value
Useful Life In Years (Year)	7 years

XML

Note 6 - Income Taxes (Details Textual) - USD ($)	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Operating Loss Carryforwards, Total			$ 244,194,000
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount			$ 2,754,909	$ 27,500,720
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent			27.55%	34.00%
Deferred Tax Assets, Increase (Decrease)	$ (21,000,000)
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount			$ 6,031,702
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability	4,000,000
Valuation Allowance Related to Deferred Tax Assets Remeasurement [Member]
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	$ (17,000,000)
Scenario, Forecast [Member]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		21.00%
Domestic Tax Authority [Member]
Operating Loss Carryforwards, Total			$ 164,160,000
Domestic Tax Authority [Member] | Earliest Tax Year [Member]
Net Operating Loss Carryforwards, Expiration Year			2019
Domestic Tax Authority [Member] | Latest Tax Year [Member]
Net Operating Loss Carryforwards, Expiration Year			2037
Domestic Tax Authority [Member] | Separate Return Limitation Year SRLY [Member]
Operating Loss Carryforwards, Total			$ 5,300,000
State and Local Jurisdiction [Member]
Operating Loss Carryforwards, Total			$ 80,034,000
State and Local Jurisdiction [Member] | Earliest Tax Year [Member]
Net Operating Loss Carryforwards, Expiration Year			2027
State and Local Jurisdiction [Member] | Latest Tax Year [Member]
Net Operating Loss Carryforwards, Expiration Year			2047

XML

Note 6 - Income Taxes - Schedule of Income Tax Expense (Benefit) (Details) - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Federal, Current
State, Current	65,203	4,000
Total current	65,203	4,000
Federal, Deferred	6,073,218	26,613,369
State, Deferred	(41,519)	30,412
Total deferred	6,031,699	26,643,781
Income tax provision	$ 6,096,902	$ 26,647,781

XML

Note 6 - Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Income taxes at the federal statutory rate, Amount	$ (524,386)	$ (1,844,749)
Income taxes at the federal statutory rate, Rate	27.55%	34.00%
State income taxes, net of federal income tax effect, Amount	$ (179,145)	$ (143,944)
State income taxes, net of federal income tax effect, Rate	9.41%	2.65%
Permanent tax differences, Amount	$ (176,818)	$ 1,135,075
Permanent tax differences, Rate	9.29%	(20.92%)
Impact of rate change of tax cuts and jobs act, Amount	$ 3,831,100
Impact of rate change of tax cuts and jobs act, Rate	(201.27%)	0.00%
Allowance, Amount	$ 2,754,909	$ 27,500,720
Allowance, Rate	(144.73%)	(506.86%)
NOL expiration, Amount	$ 388,978
NOL expiration, Rate	(20.44%)	0.00%
Other, Amount	$ 2,264	$ 679
Other, Rate	(0.12%)	0.01%
Income tax provision	$ 6,096,902	$ 26,647,781
Effective Income Tax Rate Reconciliation, Percent	(320.31%)	(491.14%)

XML

Note 6 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017
Accrued compensation	$ 424,643	$ 615,000
Accounts receivable allowance	238,629	367,000
Intangible assets	148,884	287,000
Other	178,453	237,000
Net operating loss and other carryforwards	40,149,607	60,996,017
Total gross deferred assets	41,140,216	62,502,000
Less: Valuation Allowance	(34,916,654)	(49,247,000)
Deferred tax asset after valuation allowance	6,223,562	13,255,017
Depreciation	(197,084)	(705,000)
Warrant derivative	(85,268)	(331,000)
Change in accounting method	(124,895)	(371,000)
Total deferred tax liability	(407,247)	(1,407,000)
Net Deferred Tax Asset	$ 5,816,315	$ 11,848,017

XML

Note 7 - Related Party Notes Payable (Details Textual)			3 Months Ended	12 Months Ended
	Mar. 27, 2018 USD ($) $ / shares shares	Mar. 20, 2017 USD ($) $ / shares	Jun. 30, 2017 USD ($) $ / shares shares	Jun. 30, 2018 USD ($) $ / shares shares	Jun. 30, 2017 USD ($) $ / shares shares	Mar. 26, 2018 $ / shares	Jan. 23, 2018 USD ($)
Preferred Stock, Par or Stated Value Per Share | $ / shares			$ 0.10	$ 0.10	$ 0.10
Gain (Loss) on Extinguishment of Debt, Total					$ (258,037)
New Notes Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares	825,144
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	$ 1.22					$ 2.07
Series E Convertible Preferred Stock [Member]
Stock Issued During Period, Shares, Exchange of Convertible Securities | shares			25,000
Preferred Stock, Par or Stated Value Per Share | $ / shares			$ 30	$ 30	$ 30
Convertible Preferred Stock, Aggregate Shares Issued upon Conversion | shares			187,500	187,500	187,500
Convertible Preferred Stock, Conversion Price | $ / shares			$ 4	$ 4	$ 4
Convertible Preferred Stock, Beneficial Ownership Limitation for Conversion Rights without Issuer Consent			4.99%		4.99%
Convertible Preferred Stock, Beneficial Ownership Limitation for Conversion Rights with Issuer Consent			9.99%		9.99%
Stock Issued During Period, Excess Value, Exchange of Convertible Securities					$ 50,000
Series B Preferred Stock [Member]
Preferred Stock, Preferred Dividends in Arrears Waived During Period					120,385
Secured Convertible Note Payable [Member]
Debt Instrument, Face Amount				$ 3,049,651
Promissory Notes [Member] | Chief Executive Officer [Member]
Debt Instrument, Face Amount	$ 500,000						$ 500,000
Debt Instrument, Convertible, Conversion Price | $ / shares	$ 1.20
Debt Instrument, Interest Rate, Stated Percentage							5.00%
Original Notes [Member]
Debt Instrument, Face Amount		$ 2,170,000
Embedded Derivative, Fair Value of Embedded Derivative Liability			$ 328,422		328,422
Gain (Loss) on Extinguishment of Debt, Total					$ (258,037)
Original Notes [Member] | Unsecured Promissory Note [Member] | Optimum Ventures, LLC and Hanif A. Roshan [Member]
Debt Instrument, Face Amount		700,000
Original Notes [Member] | Secured Convertible Note Payable [Member]
Interest Payable, Current				155,000
Original Notes [Member] | Secured Convertible Note Payable [Member] | Lender One [Member]
Debt Instrument, Face Amount		$ 950,000
Debt Instrument, Convertible, Conversion Price | $ / shares		$ 2.25
Original Notes [Member] | Convertible Notes Payable [Member] | J. David Luce [Member]
Debt Instrument, Face Amount		$ 520,000
Debt Instrument, Convertible, Conversion Price | $ / shares		$ 3
New Notes [Member]
Debt Instrument, Face Amount		$ 2,545,199
Debt Instrument, Convertible, Conversion Price | $ / shares		$ 2.03
Debt Instrument, Convertible, Number of Equity Instruments		1,253,792
Debt Instrument, Percentage of Conversion Price to Price per Share if Lower than Original Conversion Price		85.00%
Embedded Derivative, Fair Value of Embedded Derivative Liability		$ 328,422
Debt Instrument, Term		1 year
Debt Instrument, Interest Rate, Stated Percentage		5.00%
Debt Instrument, Period Following National Securities Exchange Listing of Common Stock to Commence Redemption Right by Debtor		1 year
Debt Instrument, Redemption Price, Percentage		110.00%
Debt Instrument, Event of Default, Outstanding Principal and Interest Payable at Lenders' Option, Percent		110.00%
New Notes [Member] | Secured Convertible Note Payable [Member]
Debt Instrument, Convertible, Number of Equity Instruments	2,120,999
Gain (Loss) on Extinguishment of Debt, Total				(242,846)
Embedded Derivative, Loss on Embedded Derivative				$ 904,035
New Notes [Member] | Secured Convertible Note Payable [Member] | Chief Executive Officer [Member]
Debt Instrument, Face Amount	$ 255,417
New Notes [Member] | Secured Convertible Note Payable [Member] | Optimum Ventures, LLC [Member]
Debt Instrument, Face Amount	591,613
Additional Senior Note [Member] | Secured Convertible Note Payable [Member]
Debt Instrument, Face Amount	$ 504,452
Debt Instrument, Convertible, Conversion Price | $ / shares	$ 1.20
Debt Instrument, Convertible, Number of Equity Instruments	420,376

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Note 7 - Related Party Notes Payable - Related Party Notes Payable (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017
Related party notes payable and related party accrued interest	$ 3,049,651	$ 2,545,199
Secured Convertible Note Payable [Member]
Related party notes payable, principal	3,049,651
Related party notes payable and related party accrued interest		$ 2,545,199
Secured Convertible Note Payable [Member] | Lender One [Member]
Related party notes payable, principal	$ 1,056,875
Debt instrument, stated percentage	5.00%	5.00%
Related party notes payable and related party accrued interest		$ 1,056,875
Secured Convertible Note Payable [Member] | Lender Two [Member]
Related party notes payable, principal	$ 641,294
Debt instrument, stated percentage	5.00%	5.00%
Related party notes payable and related party accrued interest		$ 641,294
Secured Convertible Note Payable [Member] | Lender Three [Member]
Related party notes payable, principal	$ 255,417
Debt instrument, stated percentage	5.00%	5.00%
Related party notes payable and related party accrued interest		$ 255,417
Secured Convertible Note Payable [Member] | Lender Four [Member]
Related party notes payable, principal	$ 591,613
Debt instrument, stated percentage	5.00%	5.00%
Related party notes payable and related party accrued interest		$ 591,613
Secured Convertible Note Payable [Member] | Lender Five [Member]
Related party notes payable, principal	$ 504,452
Debt instrument, stated percentage	5.00%
Related party notes payable and related party accrued interest

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Note 8 - Equity (Details Textual) - USD ($)		1 Months Ended	12 Months Ended
	Jun. 18, 2018	Jul. 31, 2018	Jun. 30, 2018	Mar. 27, 2018	Mar. 26, 2018	Jun. 30, 2017
Preferred Stock, Par or Stated Value Per Share			$ 0.10			$ 0.10
New Notes Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights				825,144
Class of Warrant or Right, Exercise Price of Warrants or Rights				$ 1.22	$ 2.07
Series D Convertible Preferred Stock [Member]
Dividends, Stock, Total	$ 936,756		$ 2,018
Subsequent Event [Member] | Common Stock Issued for Series E Preferred Stock Dividends [Member]
Common Stock Dividends, Shares		39,383
Subsequent Event [Member] | Common Stock Issued for Series D Preferred Stock Dividends [Member]
Common Stock Dividends, Shares		94,354
Series E Convertible Preferred Stock [Member]
Preferred Stock, Shares Outstanding, Ending Balance			25,000			25,000
Convertible Preferred Stock, Aggregate Shares Issued upon Conversion			187,500			187,500
Convertible Preferred Stock, Conversion Price			$ 4			$ 4
Preferred Stock, Par or Stated Value Per Share			$ 30			$ 30
Preferred Stock, Period Following Issuance Date to Initiate Redemption			1 year
Preferred Stock, Dividend Rate, Percentage			5.00%
Dividends Payable			$ 47,979
Series D Convertible Preferred Stock [Member]
Preferred Stock, Shares Outstanding, Ending Balance			605,000			605,000
Convertible Preferred Stock, Aggregate Shares Issued upon Conversion			619,154
Convertible Preferred Stock, Conversion Price			$ 9.77139
Preferred Stock, Dividend Rate, Percentage			5.00%
Dividends Payable			$ 936,756
Preferred Stock, Redemption Price Per Share			$ 10

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Note 8 - Equity - Earnings Per Share (Details) - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Basic earnings (loss) per share
Net loss	$ (8,000,377)	$ (32,073,514)
Preferred stock dividends	(339,756)	(358,832)
Net (loss) available to common shareholders after preferred stock dividends	$ (8,340,133)	$ (32,432,346)
Weighted average shares used in the computation of basic earnings per share (in shares)	7,249,370	7,188,900
Loss per share - basic (in dollars per share)	$ (1.15)	$ (4.51)
Dilutive earnings (loss) per share
Earnings (loss) available to common shareholders	$ (8,340,133)	$ (32,432,346)
Weighted average shares used in the computation of diluted earnings (loss) per share (in shares)	7,249,370	7,188,900
Shares used in the computation of diluted earnings (loss) per share (in shares)	7,249,370	7,188,900
Earnings (loss) per share - diluted (in dollars per share)	$ (1.15)	$ (4.51)
Employee Stock Option [Member]
Dilutive earnings (loss) per share
Anti-Dilutive Shares Excluded (in shares)	7,521,887	5,627,516

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Note 8 - Equity - Warrant Activity (Details) - Warrant [Member] - USD ($)	9 Months Ended	12 Months Ended
	Mar. 31, 2018	Jun. 30, 2017
Warrants outstanding (in shares)	4,150,535
Warrants outstanding, weighted average exercise price per share (in dollars per share)	$ 4.67
Warrants outstanding, weighted average remaining contractual life (Year)	3 years 149 days	3 years 317 days
Warrants outstanding, aggregate intrinsic value		$ 42,582
Warrants issued (in shares)
Warrants issued, weighted average exercise price per share (in dollars per share)
Warrants expired (in shares)	(691,709)
Warrants expired, weighted average exercise price per share (in dollars per share)	$ 8.68
Warrants outstanding (in shares)	3,458,826	4,150,535
Warrants outstanding, weighted average exercise price per share (in dollars per share)	$ 3.65	$ 4.67
Warrants exercisable (in shares)	3,403,270
Warrants exercisable, weighted average exercise price per share (in dollars per share)	$ 3.51
Warrants exercisable, weighted average remaining contractual life (Year)	3 years 167 days
Warrants exercisable, aggregate intrinsic value

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Note 9 - Share-based Compensation (Details Textual) - USD ($)			12 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2018
Allocated Share-based Compensation Expense, Total			$ 782,000
Omnibus Equity Incentive Plan 2011 [Member] | Restricted Stock Units (RSUs) [Member] | Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	101,971	40,724
Omnibus Equity Incentive Plan 2011 [Member] | Restricted Stock Units (RSUs) [Member] | Non-Executives [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	101,972	40,724

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Note 9 - Share-based Compensation - Stock Option Activity (Details) - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Employees [Member]
Outstanding, beginning of period (in shares)	226,902
Outstanding, weighted average exercise price (in dollars per share)	$ 9.04
Outstanding, average remaining contractual life (Year)	6 years 200 days	6 years 124 days
Number of options granted (in shares)	50,000
Granted, weighted average exercise price (in dollars per share)	$ 2
Granted, average remaining contractual life (Year)	9 years 76 days
Number of options expired/forfeited (in shares)	(11,556)
Expired/forfeited, weighted average exercise price (in dollars per share)	$ 23.40
Expired/forfeited, average remaining contractual life (Year)
Outstanding, end of period (in shares)	265,346	226,902
Outstanding, weighted average exercise price (in dollars per share)	$ 7.08	$ 9.04
Exercisable (in shares)	143,917
Exercisable, weighted average exercise price (in dollars per share)	$ 11.50
Exercisable, average remaining contractual life (Year)	4 years 160 days
Non-Executives [Member]
Outstanding, beginning of period (in shares)	602,311
Outstanding, weighted average exercise price (in dollars per share)	$ 3.57
Outstanding, average remaining contractual life (Year)	7 years 273 days	6 years 40 days
Number of options granted (in shares)	45,555
Granted, weighted average exercise price (in dollars per share)	$ 1.59
Granted, average remaining contractual life (Year)
Number of options expired/forfeited (in shares)	(102,807)
Expired/forfeited, weighted average exercise price (in dollars per share)	$ 5.33
Expired/forfeited, average remaining contractual life (Year)
Outstanding, end of period (in shares)	545,059	602,311
Outstanding, weighted average exercise price (in dollars per share)	$ 3.08	$ 3.57
Outstanding, aggregate intrinsic value
Granted, aggregate intrinsic value
Expired/forfeited, aggregate intrinsic value

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Note 9 - Share-based Compensation - Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) [Member]	12 Months Ended
	Jun. 30, 2018 $ / shares shares
Number of RSUs outstanding (in shares) | shares	411,429
RSUs outstanding, weighted average grant date fair value (in dollars per share) | $ / shares	$ 1.75
Number of RSUs granted (in shares) | shares	405,391
RSUs granted, weighted average grant date fair value (in dollars per share) | $ / shares	$ 0.85
Number of RSUs expired/forfeited (in shares) | shares	(64,429)
RSUs expired/forfeited, weighted average grant date fair value (in dollars per share) | $ / shares	$ 0.23
Number of RSUs outstanding (in shares) | shares	752,391
RSUs outstanding, weighted average grant date fair value (in dollars per share) | $ / shares	$ 1.31

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Note 10 - Fair Value Measurements and Other Financial Instruments (Details Textual) - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Gain (Loss) on Derivative Instruments, Net, Pretax, Total	$ (772,585)	$ 828,382

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Note 10 - Fair Value Measurements and Other Financial Instruments - Valuation Techniques (Details)	Jun. 30, 2018
Minimum [Member] | Measurement Input, Exercise Price [Member]
Derivative valuation assumption	1.2
Minimum [Member] | Measurement Input, Risk Free Interest Rate [Member]
Derivative valuation assumption	0.023
Minimum [Member] | Measurement Input, Price Volatility [Member]
Derivative valuation assumption	1.23
Minimum [Member] | Measurement Input, Expected Term [Member]
Derivative valuation assumption	0.72
Maximum [Member] | Measurement Input, Exercise Price [Member]
Derivative valuation assumption	1.22
Maximum [Member] | Measurement Input, Risk Free Interest Rate [Member]
Derivative valuation assumption	0.027
Maximum [Member] | Measurement Input, Price Volatility [Member]
Derivative valuation assumption	1.94
Maximum [Member] | Measurement Input, Expected Term [Member]
Derivative valuation assumption	5.07

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Note 10 - Fair Value Measurements and Other Financial Instruments - Summary in Changes in Fair Value (Details)	12 Months Ended
	Jun. 30, 2018 USD ($)
Balance, beginning of period	$ 551,040
Change in fair value of derivative liabilities	772,585
Balance, end of period	1,323,625
Warrant [Member]
Balance, beginning of period	435,036
Change in fair value of derivative liabilities	70,033
Balance, end of period	505,069
Convertible Notes [Member]
Balance, beginning of period	116,004
Change in fair value of derivative liabilities	702,552
Balance, end of period	$ 818,556

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Note 10 - Fair Value Measurements and Other Financial Instruments - Derivative Liabilities (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017
Derivative liabilities	$ 1,323,625	$ 551,040
Fair Value, Inputs, Level 1 [Member]
Derivative liabilities
Fair Value, Inputs, Level 2 [Member]
Derivative liabilities
Fair Value, Inputs, Level 3 [Member]
Derivative liabilities	$ 1,323,625	$ 551,040

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Note 11 - Commitments and Contingencies (Details Textual) - USD ($)						6 Months Ended	12 Months Ended
	Mar. 29, 2018	Mar. 12, 2018	Feb. 15, 2018	Sep. 06, 2016	Jun. 22, 2016	Jun. 30, 2018	Jun. 30, 2018
Offices in New Jersey [Member]
Lessee, Operating Lease, Term of Contract						6 years	6 years
Offices in New Jersey [Member] | Letter of Credit [Member]
Repayments of Debt						$ 121,000
Offices in New Jersey [Member] | Minimum [Member]
Operating Leases, Yearly Rent Expense						135,000
Offices in New Jersey [Member] | Maximum [Member]
Operating Leases, Yearly Rent Expense						$ 148,000
Alleged Amount Owed to AT&T [Member]
Loss Contingency, Damages Sought, Value							$ 500,000
Severance Compensation Arbitration Filed by Former CEO [Member]
Loss Contingency, Damages Sought, Value					$ 341,620
Peachstate Health Management, LLC d/b/a Aeon Clinical Laboratories v. Radius Foundation, Inc. and William Bramlett, Ph.D. [Member]
Litigation Settlement, Amount Awarded from Other Party	$ 116,865
Peachstate Health Management, LLC d/b/a Aeon Clinical Laboratories v. Trimana, LLC d/b/a Via Medical Center [Member]
Litigation Settlement, Amount Awarded from Other Party		$ 104,652
Cogmedix, Inc. v. Authentidate Holding Corp [Member]
Loss Contingency, Damages Sought, Value				$ 227,061
Litigation Settlement, Amount Awarded to Other Party			$ 320,638

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Note 11 - Commitments and Contingencies - Leases and Debt Obligations (Details)	Jun. 30, 2018 USD ($)
Operating, total	$ 5,590,001
Operating, less than 1 year	740,000
Operating, 1-3 years	1,542,001
Operating, 4-5 years	1,373,000
Operating, more than 5 years	1,935,000
Capital, total	12,000
Capital, less than 1 year	12,000
Capital, 1-3 years
Capital, 4-5 years
Capital, more than 5 years
Total lease obligations, total	5,602,001
Total lease obligations, less than 1 year	752,000
Total lease obligations, 1-3 years	1,542,001
Total lease obligations, 4-5 years	1,373,000
Total lease obligations, more than 5 years	1,935,000
Total debt obligations, total	3,364,908
Total debt obligations, less than 1 year	3,364,908
Total debt obligations, 1-3 years
Total debt obligations, 4-5 years
Total debt obligations, more than 5 years
Total obligations, total	8,966,909
Total obligations, less than 1 year	4,116,908
Total obligations, 1-3 years	1,542,001
Total obligations, 4-5 years	1,373,000
Total obligations, more than 5 years	$ 1,935,000

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Note 12 - Related Party (Details Textual)					12 Months Ended
	Mar. 27, 2018 USD ($) $ / shares shares	Mar. 20, 2017 USD ($) $ / shares	Jan. 01, 2017 USD ($)	Jan. 20, 2016 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Mar. 26, 2018 $ / shares	Jan. 23, 2018 USD ($)	Jan. 31, 2017 USD ($) $ / shares
Interest Expense, Related Party					$ 42,000	$ 42,000
New Notes Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares	825,144
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	$ 1.22						$ 2.07
New Notes [Member]
Debt Instrument, Face Amount		$ 2,545,199
Debt Instrument, Convertible, Conversion Price | $ / shares		$ 2.03
Debt Instrument, Convertible, Number of Equity Instruments		1,253,792
Debt Instrument, Interest Rate, Stated Percentage		5.00%
Original Notes [Member]
Debt Instrument, Face Amount		$ 2,170,000
Secured Convertible Note Payable [Member]
Debt Instrument, Face Amount					3,049,651
Secured Convertible Note Payable [Member] | New Notes [Member]
Debt Instrument, Convertible, Number of Equity Instruments	2,120,999
Secured Convertible Note Payable [Member] | Original Notes [Member]
Interest Payable, Current					155,000
Hanif A. Roshan [Member] | Unsecured Promissory Note [Member]
Debt Instrument, Face Amount									$ 2,545,199
Debt Instrument, Convertible, Conversion Price | $ / shares									$ 1.20
Chief Executive Officer [Member] | Promissory Notes [Member]
Debt Instrument, Face Amount	$ 500,000							$ 500,000
Debt Instrument, Convertible, Conversion Price | $ / shares	$ 1.20
Debt Instrument, Interest Rate, Stated Percentage								5.00%
Chief Executive Officer [Member] | Secured Convertible Note Payable [Member] | New Notes [Member]
Debt Instrument, Face Amount	$ 255,417
Optimum Ventures, LLC [Member] | Secured Convertible Note Payable [Member] | New Notes [Member]
Debt Instrument, Face Amount	$ 591,613
Kemah Palms [Member]
Revenue from Related Parties					10,000
Affiliated With a Distributor and Business Consultant [Member] | Entity Affiliated With CEO [Member]
Due from Related Parties, Total					500,000
Facilities Leased [Member] | Centennial Properties of Georgia, LLC [Member]
Lessee, Operating Lease, Term of Contract				12 years
Operating Leases, Rent Expense, Net, Total					580,500	$ 562,500
Facilities Leased [Member] | Centennial Properties of Georgia, LLC [Member] | Minimum [Member]
Operating Leases, Monthly Rent Expense				$ 46,500
Facilities Leased [Member] | Centennial Properties of Georgia, LLC [Member] | Maximum [Member]
Operating Leases, Monthly Rent Expense				$ 60,000
Residential Premises Leased [Member] | Hanif A. Roshan [Member]
Lessee, Operating Lease, Term of Contract			1 year
Operating Leases, Monthly Rent Expense			$ 7,500
Operating Leases, Rent Expense, Net, Total					$ 90,000
Operating Leases, Increase in Rent Expense Upon Each Renewal			3.00%

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Note 13 - Segment Information (Details Textual)	12 Months Ended
	Jun. 30, 2018
Number of Operating Segments	2

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Note 13 - Segment Information - Selected Financial Information (Details) - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Net revenues	$ 16,301,144	$ 20,198,771
Cost of revenues	3,802,174	4,200,445
Operating expenses	17,081,680	25,578,069
Operating income (loss)	(780,536)	(5,379,298)
Total assets	10,975,255	16,731,678
Web-based Software [Member]
Net revenues	991,863	1,286,697
Cost of revenues	194,596	1,178,586
Operating expenses	2,465,128	8,048,427
Operating income (loss)	(1,473,265)	(6,761,730)
Total assets	7,532,512	11,772,871
Laboratory Testing Services [Member]
Net revenues	15,309,281	18,912,074
Cost of revenues	3,607,578	3,021,859
Operating expenses	14,616,552	17,529,642
Operating income (loss)	692,729	1,382,432
Total assets	$ 3,442,743	$ 4,958,807

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Note 14 - Subsequent Events (Details Textual) - USD ($)				12 Months Ended
	Jul. 19, 2018	Jun. 30, 2018	Jun. 18, 2018	Jun. 30, 2018	Aug. 31, 2018	Jun. 30, 2017	Mar. 20, 2017
Short-term Debt, Total		$ 3,049,651		$ 3,049,651		$ 2,545,199
Secured Convertible Note Payable [Member]
Short-term Debt, Total						$ 2,545,199
Debt Instrument, Face Amount		3,049,651		3,049,651
Original Notes [Member]
Debt Instrument, Face Amount							$ 2,170,000
Subsequent Event [Member] | Secured Convertible Note Payable [Member]
Short-term Debt, Total					$ 3,209,651
Subsequent Event [Member] | Grid Notes [Member]
Debt Instrument, Face Amount					$ 2,000,000
Optimum Ventures, LLC [Member]
Short-term Debt, Total		$ 591,613		591,613
Lenders [Member] | Subsequent Event [Member]
Debt Instrument, Face Amount, Exchanged	$ 1,351,482
Lenders [Member] | Subsequent Event [Member] | Grid Notes [Member]
Debt Instrument, Face Amount	$ 2,000,000
Debt Instrument, Interest Rate, Effective Percentage	7.50%
AEON Global Health Corp [Member]
Number of Shares of the Company’s Common Stock Issued Presented as Percentage of Issued and Outstanding Shares If EBITDA Level Is Achieved for Three Years		85.00%
Number of Shares of the Company’s Common Stock Issued Presented as Percentage of Issued and Outstanding Shares If EBITDA Level Is Achieved for Four Years		90.00%
Number of Shares Issuable upon Achievement of Earnout		70,000,000
AEON Global Health Corp [Member] | Subsequent Event [Member] | Note Restructuring Transaction [Member] | Lenders [Member]
Debt Agreement, Maximum Borrowing Capacity	$ 2,000,000
AEON Global Health Corp [Member] | Subsequent Event [Member] | Original Notes [Member] | Secured Convertible Note Payable [Member]
Debt Instrument, Face Amount	$ 1,698,169
AEON Global Health Corp [Member] | Subsequent Event [Member] | Optimum Ventures, LLC [Member]
Number of Shares Issuable upon Achievement of Earnout	1,200,000
The 2018 Earnout Presented as Amount of EBITDA for Three Years	$ 21,483,749
Fixed Numbers of Shares Issuable If the 2018 Earnout Achieved	3,000,000
Percentage of 2018 Earnout Target Required for Three Years	75.00%
Fixed Numbers of Shares Issuable If 2018 EBITDA for Three Years Is Met	$ 2,250,000
The 2019 Earnout Presented as Amount of EBITDA for Three Years	$ 32,600,530
Fixed Numbers of Shares Issuable If the 2019 Earnout Achieved	4,000,000
Percentage of 2019 Earnout Target Required for Three Years	75.00%
Fixed Numbers of Shares Issuable If 2019 EBITDA for Three Years Is Met	3,000,000
Number of Additional Shares Issuable in Consideration of Restructuring	2,500,000
AEON Global Health Corp [Member] | Chief Executive Officer [Member]
Short-term Debt, Total		$ 760,000		$ 760,000
Debt Instrument, Convertible, Number of Equity Instruments	1,126,235
AEON Global Health Corp [Member] | Chief Executive Officer [Member] | Subsequent Event [Member] | Grid Notes [Member]
Short-term Debt, Total	$ 759,869
Debt Instrument, Face Amount	1,100,000
AEON Global Health Corp [Member] | Optimum Ventures, LLC [Member]
Debt Instrument, Convertible, Conversion Price		$ 1.20		$ 1.20
AEON Global Health Corp [Member] | Optimum Ventures, LLC [Member] | Subsequent Event [Member] | Grid Notes [Member]
Short-term Debt, Total	591,613
Debt Instrument, Face Amount	$ 900,000
AEON Global Health Corp [Member] | Lenders [Member] | Subsequent Event [Member] | Grid Notes [Member]
Debt Instrument, Redemption Price, Percentage	110.00%
Series D Convertible Preferred Stock [Member]
Dividends, Stock, Total			$ 936,756	$ 2,018
Stock Dividends, Shares, Total			94,354
Series E Convertible Preferred Stock [Member]
Dividends, Stock, Total			$ 47,979
Stock Dividends, Shares, Total			39,383